The battle between DraftKings and Fanatics exploded into open court during a hearing Tuesday, where the judge heard about secret phone calls, the alleged stealing of trade secrets, and offers for DraftKings employees to jump ship for millions of dollars.
The case involves Michael Hermalyn, the former head of VIP operations for DraftKings who took a similar job with Fanatics. DraftKings filed a federal lawsuit against Hermalyn, alleging he plotted to steal confidential information and take it to Fanatics in violation of his non-compete agreement.
The lawsuit claims Hermalyn met with Fanatics’ CEO, downloaded DraftKings’ confidential business plans, and then quit to take a similar role at rival sportsbook Fanatics. DraftKings is seeking an injunction to prevent him from both working there and diverting customers. The judge took a half measure on these requests in February, allowing Hermalyn begin working for Fanatics but keeping him away from DraftKings VIP customers.
Hermalyn made his first appearance in the case in a Boston court Tuesday.