Michael Z. Hermalyn, the President of Fanatics VIP and former SVP of growth at DraftKings, has been issued a temporary restraining order preventing him from disclosing any confidential information from his former employer to his new one. The order also prohibits him from soliciting with DraftKings employees or clients, but does not bar him from working at Fanatics.
This legal action comes after Hermalyn filed a lawsuit challenging the non-compete policy he signed with DraftKings, claiming it was overly restrictive and unenforceable in California, where he currently resides.
DraftKings has accused Hermalyn of conspiring with Fanatics to obtain insider information related to the upcoming Super Bowl, which may benefit Fanatics and harm DraftKings. However, Fanatics VIP has denied these allegations.
US District Judge Julia Kobick issued the temporary restraining order after an hour-long hearing in Boston, Massachusetts, stating that there was sufficient evidence to justify the order and preserve the status quo.
The order also requires Hermalyn to return any confidential information belonging to DraftKings and disclose any information that may have been shared with third parties.
Hermalyn’s defense lawyer, Russell Beck, has denied any wrongdoing, stating that his client returned all computer equipment belonging to his former employer.
DraftKings has expressed their satisfaction with the temporary restraining order, emphasizing the importance of preventing Hermalyn from using any confidential information or soliciting with their current customers or employees.
The temporary restraining order is set to remain in effect until April when a hearing for DraftKings is scheduled.