A federal court has granted DraftKings a preliminary injunction against its former VIP head, Michael Hermalin, who stands accused of misappropriating confidential information. The injunction, issued by U.S. District Judge Julia Kobik, restricts Hermalin's ability to provide services to his new employer, Fanatics, following allegations of trade secret theft.
Under the court order, Hermalin is prohibited from engaging in activities that violate his non-compete agreements with DraftKings. This includes working with Fanatics for the maximum 12-month period allowed under Massachusetts law.
DraftKings alleges that Hermalin orchestrated an intricate scheme to obtain confidential information, including faking the death of a friend to justify his absence while meeting with Fanatics executives. Contrary to his claims of traveling to Philadelphia for a funeral, DraftKings asserts that Hermalin instead traveled to Los Angeles to negotiate a contract with Fanatics, including meetings with CEO Michael Rubin.
The injunction represents a significant legal victory for DraftKings as it seeks to protect its trade secrets and uphold contractual obligations amidst allegations of corporate espionage.
