DRC Congratulates its Client Gibson Dunn on Their Victory on Behalf of Their Client, DraftKings Inc.

DraftKings brought this lawsuit after Hermalyn—its former senior vice president of growth who oversaw relationships with DraftKings’ largest customers—resigned on February 1, 2024 ahead of the Super Bowl to join Fanatics, a sports betting rival of DraftKings. DraftKings alleged Mr. Hermalyn quit his job to help build out Fanatics’ nascent team catering to “VIP” clients. The Gibson Dunn team obtained a temporary restraining order on February 8. Following oral argument on DraftKings’ motion on April 2, the Court ordered an evidentiary hearing for April 16. Six witnesses testified, including Mr. Hermalyn.

Judge Kobick found that, in the days before resigning, Mr. Hermalyn used unauthorized means to transfer DraftKings documents to himself and accessed some while staying at the home of Fanatics CEO Michael Rubin. Those records included a pitch deck presentation containing DraftKings’ strategies for building relationships with potential business partners and a spreadsheet detailing its plans for entertaining specific clients during the 2024 Super Bowl. Judge Kobick found that Mr. Hermalyn “struggled with candor to the Court” in his testimony at the evidentiary hearing, pointing out that Hermalyn’s account suffered from “memory lapses” and “inconsistencies” and finding that he had not testified credibly about whether he tried to poach two other DraftKings employees. Those employees testified about multi-million dollar offers they received from Mr. Hermalyn, who spoke with them while staying at Mr. Rubin’s home after deciding to quit DraftKings. The Court’s April 30 injunction prevents Mr. Hermalyn from providing services relating to any aspects of DraftKings’ business that he was involved in or for which he had received confidential information, for a 12-month period starting when he began his new job.  

DRC assisted the team with demonstrative aids and at-hearing technology services.