Former DraftKings Executive Seeks $310K in Legal Fees Amidst Court Battle

In the ongoing legal saga between former DraftKings executive Michael Hermalyn and his ex-employer, DraftKings, Hermalyn’s attorneys are now seeking over $310,000 in attorney fees, alleging what they term as “legal misconduct” on the part of DraftKings.

DraftKings Faces Legal Heat as Former Exec Challenges Noncompete Agreement

Hermalyn, who recently made a high-profile switch to sports betting rival Fanatics, has been embroiled in a legal dispute with DraftKings over the validity of a noncompete clause in his contract. The clause, which prevents him from working for a competitor, has been contested under California law, which does not uphold such agreements.

According to court filings, Hermalyn’s attorneys have lambasted DraftKings for what they deem “objectively unreasonable” actions, specifically citing the company’s repeated attempts to move the case from state to federal court, reported Law360. They argue that these maneuvers were made with the intention of delaying Hermalyn’s pursuit of immediate relief in state court, allowing DraftKings to file its own lawsuit against him in Massachusetts.

Legal representatives for Hermalyn, from the law firm Munger Tolles & Olson LLP, have emphasized the disruptive nature of DraftKings’ actions, asserting that these tactics have hindered Hermalyn’s ability to present his case effectively. They are now seeking compensation totaling $310,604 to cover the expenses incurred during these legal clashes.

DraftKings Accuses Former Executive of Breach, Hermalyn Counters Claims

The feud between Hermalyn and DraftKings has escalated rapidly since Hermalyn’s departure from the company and subsequent joining of Fanatics. In its Massachusetts filing, DraftKings has accused Hermalyn of orchestrating a clandestine plan over the past year to leave together with sensitive company information and join forces with Fanatics, a move DraftKings alleges constitutes a breach of Hermalyn’s contractual obligations.

As a result, Hermalyn refuted DraftKings’ allegations in a sworn statement presented to the federal court, labeling the assertions as “utterly untrue and manufactured.” He conveyed his surprise and disillusionment regarding the gravity of the accusations, referencing his expectation of vigorous tactics from DraftKings, drawing from past encounters.

In response to DraftKings’ allegations, a judge in Massachusetts District Court issued a temporary restraining order against Hermalyn, prohibiting him from divulging any confidential information belonging to DraftKings or soliciting its customers or employees for Fanatics.

This legal clash underscores the intensifying competition within the lucrative sports betting industry, with major players like DraftKings and Fanatics vying for market dominance. As the legal proceedings continue to unfold, the ramifications for both Hermalyn and his former employer remain uncertain, signaling a protracted legal battle ahead.