PrizePicks Sues Ex-Director and DraftKings Over Stolen Trade Secrets

A Betrayal in the Fantasy Sports Arena

PrizePicks, a leading daily fantasy sports (DFS) operator, dropped a legal bombshell, suing its former social media director, Judah Huffman, and competitor DraftKings in Western Washington District Court.

The Atlanta-based company claims Huffman, who jumped ship to DraftKings in May, stole proprietary documents and violated a one-year non-compete agreement. “We are taking swift steps to ensure our trade secrets are safeguarded,” said PrizePicks spokesperson Elisa Richardson.

The lawsuit, which also names LinkedIn Corp., seeks to block Huffman from working at DraftKings and using any pilfered secrets.

PrizePicks alleges Huffman, hired in 2023 as director of social media, betrayed the company after landing a $210,000-a-year role as DraftKings’ director of social and community.

The suit says Huffman used ChatGPT to probe his non-compete’s enforceability after DraftKings’ May 2 offer, up from $200,000, suggesting he leveraged stolen data to boost his pay.

Forensic evidence, per PrizePicks, shows Huffman uploaded sensitive documents, like a 2025 brand planning file and team goals, to his personal ChatGPT account.

When Huffman returned his company laptop and phone on May 13, “surgical” deletions of files, emails, and chats pointed to a cover-up, the suit claims. “Huffman’s actions were willful and malicious,” PrizePicks argued, citing breaches of contract, fiduciary duty, and the Defend Trade Secrets Act.

DraftKings in the Crosshairs

DraftKings, a Boston-based DFS and betting giant with a $20 billion market cap, is accused of benefiting from Huffman’s alleged theft. PrizePicks says Huffman’s May 5 resignation, followed by vague meetings with CEO Mike Ybarra and founder Adam Wexler, hid his DraftKings move.

The suit draws parallels to DraftKings’ 2024 lawsuit against its ex-VIP director, Mike Hermalyn, who joined Fanatics with trade secrets, resulting in a partial injunction and settlement.

PrizePicks seeks a temporary injunction to stop Huffman’s DraftKings role, arguing his actions could erode its $2 billion valuation. DraftKings, no stranger to legal scraps, faced a similar patent suit from Engine Media in 2021.