Gambling

Ex-DraftKings Exec in Company Secrets Row Hits Out at ‘False’ Allegations

Posted on: February 8, 2024, 08:27h. 

Last updated on: February 8, 2024, 08:27h.

A former DraftKings executive accused by the sports betting giant of corporate espionage has called the allegations “entirely fabricated,” in a new filing to a Massachusetts federal court.

Michael Hermalyn, DraftKings, Fanatics, Michael Rubin, corporate espionage
Michael Hermalyn, pictured in 2017 during an interview with Cheddar.com. He denies plotting to join Fanatics and sharing sensitive DraftKings data with his new employer. (Image: Cheddar)

DraftKings sued its former senior vice-president of Growth, Michael Hermalyn, on Monday. The lawsuit claims he plotted for over a year to jump ship to competitor Fanatics, taking with him confidential information about DraftKings VIP clients, along with its Super Bowl business plan.

Hermalyn “timed his departure and theft of confidential information to coincide with the critical days leading up to the Super Bowl to further a scheme to irreparably interfere with DraftKings’ customer and business relationships by pursuing those relationships at Fanatics using the confidential information and goodwill that he obtained at DraftKings,” it claims.

‘Shocked and Disappointed’

Hermalyn says that’s a bunch of nonsense.

When I decided to leave, I knew from past experience with DraftKings that they would likely come after me aggressively and malign me as they have done with others,” he wrote in a declaration to the court. “However, I am shocked and disappointed to see they would go so far as they have and actually make so many completely false and fabricated accusations against me in court.”

Hermalyn claims he did not have an offer to join Fanatics until January 27, 2014, and denies secretly discussing employment with Fanatics CEO Michael Rubin or anyone else at the company in 2013.

He also denied sharing any documents with fanatics or having access to any DraftKings files after his resignation.

‘Horrid’ Accusation

Moreover, he said the allegation that he falsely claimed to be mourning the death of a friend so he could take time off to fly to L.A. for contract negotiations was “horrid.”

“DraftKings’ accusation that I falsely claimed to be mourning the death of my friend in late January is both wrong and disappointing,” Hermalyn said. “The week of January 29 was particularly difficult for me emotionally. In addition to grieving the death of my friend, I was contemplating an opportunity to make a significant advancement in my career by joining Fanatics VIP … which meant an immediate move to California, uprooting my family.”

DraftKings claimed in the lawsuit that Hermalyn “fraudulently attempted to establish California residency during … the visit so he could resign from DraftKings and try to invalidate his noncompete agreements in California state court.”

As of January 1, 2014, California’s Business & Professions Code prohibits an employer from enforcing a non-compete agreement regardless of whether the contract was signed outside of California.


Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Do you run a company that want to build a new website and are looking for a web agency in Sweden that can do the job? At Partna you can get connected to experienced web agencies that are interested in helping you with your website development. Partna is an online service where you simply post your web development needs in order to get business offers from skilled web agencies in Sweden. Instead of reaching out to hundreds of agencies by yourself, let up to 5 web agencies come to you via Partna.
Back to top button