DraftKings Secures Preliminary Injunction Against Former Executive Now at Fanatics
A recent ruling by Massachusetts District Court Judge Julia E. Kobick has temporarily restricted Michael Hermalyn, a former DraftKings executive, in his new role at competitor Fanatics. This preliminary injunction, issued in response to DraftKings’ concerns about contractual breaches and trade secret misappropriations, specifically limits the type of work Hermalyn can engage in at Fanatics without completely barring his employment.
Details of the Injunction
Judge Kobick’s decision prevents Hermalyn from offering services related to his former role at DraftKings or utilizing any confidential information he had access to during his tenure. The order encompasses several key restrictions:
- Hermalyn is barred from providing services in any capacity that overlaps with his previous responsibilities at DraftKings for twelve months.
- He is prohibited from soliciting or hiring DraftKings employees until February 2024.
- The use of confidential information from DraftKings in his new role is forbidden.
- Hermalyn must not destroy or alter any documents containing sensitive information from his time at DraftKings.
Reactions from DraftKings and Fanatics
DraftKings has expressed satisfaction with the court’s decision, viewing it as a validation of their efforts to enforce non-compete and confidentiality agreements.
On the other hand, Fanatics has criticized the ruling as overly broad and indicative of what it describes as a punitive measure by DraftKings against a former employee who pursued a better opportunity. Despite the constraints imposed, Fanatics affirmed that Hermalyn would continue to contribute to their operations within the bounds set by the court order.
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