PrizePicks Sues Former Social Media Director over Alleged Non-Compete Breach

PrizePicks has taken its former director of social media, Judah Huffman, to federal court, accusing him of stealing trade secrets and violating a one-year non-compete agreement as he jumped ship to rival sportsbook operator DraftKings. This lawsuit will likely be another test for the enforceability of non-competes across state lines.

PrizePicks Alleges Huffman Deliberately Misled Executives

The suit, filed in the US District Court for the Western District of Washington as SidePrize LLC d/b/a PrizePicks v. Huffman, details several serious allegations. PrizePicks contends that Huffman leveraged proprietary company data to secure his new position at DraftKings as Director of Social & Community. He reportedly settled into his new role on May 2, just a few days before he formally resigned from PrizePicks.

The complaint accuses Huffman of misleading high-ranking executives, such as CEO Mike Ybarler and founder Adam Wexler, during his exit process, providing no definitive information on what he would do next, even as he was in active discussions with DraftKings. His May 5 resignation came shortly after those internal discussions, which PrizePicks argues were marked by intentional omissions and misrepresentations.

The company alleges Huffman not only knew about his contractual obligations but also went out of his way to conceal violations. Upon returning company-issued devices, PrizePicks claims it uncovered extensive deletions. Huffman reportedly scrubbed everything from internal communications to shared files, pointing to a targeted effort to obscure evidence.

A Similar Legal Battle Ended with a Settlement

The suit suggests Huffman’s move wasn’t just about a job change. PrizePicks contends that Huffman leveraged privileged internal information, such as marketing strategies, social media performance metrics, and user engagement models, to secure a substantial salary bump with DraftKings, reportedly negotiating a $210,000 per year.

The lawsuit calls for a court order to block Huffman from continuing his work at DraftKings while also seeking to enforce the remainder of his non-compete. The operator contends such a move would protect confidential materials acquired during Huffman‘s time with the company. The complaint alleges multiple violations, from breach of contract and breach of fiduciary duty to violations of the federal Defend Trade Secrets Act.

The case mirrors the earlier fight between DraftKings and its former executive, Michael Hermalyn, who was sued on the same grounds after he left for Fanatics. After a hard-fought settlement, Hermalyn’s lawyer noted that the former executive would honor his obligations to DraftKings. Meanwhile, the newest legal challenge will further test the enforceability of non-competes across state lines in the increasingly dynamic gambling sector.