DraftKings, Hermalyn Trial Opens in Massachusetts

Michael Hermalyn left his position at DraftKings to take the same job with Fanatics. The sportsbook accused Hermalyn of breaking a non-compete clause. He said he did not because such clauses are not legal in California.

DraftKings, Hermalyn Trial Opens in Massachusetts

It’s not quite the trial of the century, but the lawsuits between DraftKings and its one-time boss of the VIP program got underway in Massachusetts more than two months after the combatants began combatting.

In one corner is Michael Hermalyn, who occupies a similar VIP role with Fanatics. He stands accused of violating the non-compete clause, of stealing company secrets on his way out the door and trying to convince two other executives to leave DraftKings.

Hermalyn acknowledged the clause violation—if he lived in Massachusetts. But he moved to California where state law does not allow such clauses, according to LSR.

DraftKings’ seeks a preliminary injunction. No temporary restraining order.

Andrew Larracey and Hayden Metz said Hermalyn offered them jobs on day one of his employment with Fanatics.

Larracey said his package totaled more than $3 million and involved a relocation to California. Fanatics spoke with Larracey, but the company never offered a deal.

Metz, who took Hermalyn’s place as overseer of the VIP program at DraftKings, was initially offered a compensation package worth $5 million, which was later raised to $8 million.

When it came to documents, Hermalyn denied wrongly accessing DraftKings files, but admitted copying some internal papers because of a move to a new computer.

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