DraftKings and Former Exec Michael Hermalyn Nearing Settlement
The legal battle between DraftKings and former executive Michael Hermalyn may be coming to an end as both parties negotiate a potential settlement.
Background of Legal Dispute
The dispute arose after Hermalyn left DraftKings to join Fanatics Sportsbook in February, leading to a lawsuit over the enforcement of his non-compete agreement.
While DraftKings initially secured an injunction limiting Hermalyn’s role at Fanatics, Hermalyn has been fighting back in a California court, seeking to invalidate the non-compete agreement before it expires in February 2025.
Key Developments in the Case
U.S. District Court Judge Julia Kobick recently paused the federal case, pending a decision from a separate trial in Los Angeles. If Hermalyn wins the case in California, it could reduce the duration of his job restrictions, allowing him to fully engage in his role at Fanatics sooner.
Despite the ongoing legal dispute, both sides have refrained from commenting on the settlement talks, which could potentially save them from further legal expenses—Hermalyn has already incurred close to $276,000 in legal fees shortly after his resignation.
DraftKings initially accused Hermalyn of intending to steal confidential information to benefit his new employer, Fanatics Sportsbook, but Hermalyn has vehemently denied these accusations, calling them “false and fabricated.”
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