Michael Z. Hermalyn, former SVP of growth at DraftKings and current Fanatics VIP president, has been temporarily prohibited from sharing any sensitive information obtained from his previous employer. The temporary restraining order, issued on Thursday, restricts Hermalyn from using any confidential information or soliciting DraftKings employees or clients. However, he is not prohibited from working at Fanatics.

Hermalyn recently filed a lawsuit against DraftKings, challenging the non-compete policy he had signed. He claimed the policy was overly restrictive and unenforceable in California, where he currently resides. This legal action came after his resignation from DraftKings.

In response, DraftKings alleged that Hermalyn conspired with Fanatics to obtain insider information related to the upcoming Super Bowl, including marketing plans that could benefit Fanatics and harm DraftKings. Fanatics VIP denied these allegations, labelling them as “false and fabricated.”

The temporary restraining order prohibits Hermalyn from sharing any confidential information with Fanatics. US District Judge Julia Kobick issued the order after a hearing in Boston, stating that there was sufficient evidence for the need for the order to preserve the status quo. Hermalyn is also directed to return any confidential information belonging to DraftKings within three days.

Hermalyn’s defense lawyer, Russell Beck, rejected claims of any wrongdoing, stating that his client returned all computer equipment belonging to his former employer. The temporary restraining order is expected to remain in effect until April when a hearing for DraftKings is scheduled.

A spokesperson for DraftKings expressed satisfaction with the temporary restraining order, emphasizing its importance in preventing Hermalyn from using any confidential information or soliciting with DraftKings’ current customers or employees.

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