The continuing legal battle between Michael Hermalyn, a former senior executive at DraftKings, and his previous employer, DraftKings, takes a new turn as Hermalyn’s lawyers now seek upwards of $310,000 in attorneys fees. They are alleging what is characterized as “legal misconduct” enacted by DraftKings.
Mounting Legal Pressures for DraftKings as Ex-Senior Exec Opposes Noncompete Clause
Hermalyn, who stirred up interest with his recent transfer to sport betting competitor Fanatics, is currently ensnared in a legal tangle with DraftKings concerning the enforcement of a noncompete clause in his contract. The clause, which bars him from employment with a rival company, is being disputed under California law, known for not supporting such agreements.
Court documents reveal that Hermalyn’s legal team has strongly criticized DraftKings for what they call “objectively unreasonable” procedures, particularly referring to the company’s continuous efforts to shift the case from state to federal jurisdiction, as noted by Law360. They contend that these strategic moves were intended to delay Hermalyn’s hunt for immediate relief in state court, thus providing DraftKings the opportunity to initiate its own legal proceedings against him in Massachusetts.
Hermalyn’s legal advocates, from prestigious law firm Munger Tolles & Olson LLP, have highlighted the obstructive impact of DraftKings’ actions, maintaining that these strategies have impaired Hermalyn’s capability to defend his case effectively. They are now demanding compensation amounting to $310,604 for the costs accrued during these legal confrontations.
DraftKings Charges Former Executive with Breach, Hermalyn Rebuts Allegations
The conflict between Hermalyn and DraftKings has rapidly escalated since Hermalyn’s departure from the company and his subsequent affiliation with Fanatics. In its Massachusetts lawsuit, DraftKings has indicted Hermalyn of developing a covert plot over the past year to exit with proprietary company data and unite with Fanatics, an action DraftKings claims constitutes a breach of Hermalyn’s contractual duties.
In response, Hermalyn denied DraftKings’ charges in a solemn declaration delivered to the federal court, categorizing the claims as “completely baseless and fabricated.” He expressed his astonishment and disenchantment about the severity of the charges, referencing his anticipation of forceful tactics from DraftKings, informed by previous experiences.
In the wake of DraftKings’ accusations, a Massachusetts District Court judge imposed a temporary restraining order on Hermalyn, forbidding him from releasing any confidential data owned by DraftKings or enticing its clientele or staff for Fanatics.
This legal spar underscores the growing competition of the prosperous sports betting market, with heavyweight entities like DraftKings and Fanatics competing for sector supremacy. As the courtroom drama continues to unravel, the outcomes for both Hermalyn and his previous employer remain ambiguous, indicating an extended legal struggle in the offing.
