• Loading stock data...
Monday, September 1, 2025
The biggest names in sports media. All in one room. Get your ticket now!
Law

DraftKings, Former Exec Talk Settlement in Marathon Legal Battle

  • Lawyers for Michael Hermalyn, DK say they are “negotiating a potential resolution” of the case.
  • DraftKings secured an injunction that limits Hermalyn’s duties at Fanatics Sportsbook.
Feb 9, 2023; Phoenix, AZ, USA; A DraftKings countdown clock on radio row at the Super Bowl LVII media center at the Phoenix Convention Center.
Kirby Lee-Imagn Images

The long-running legal battle between DraftKings and a former executive could be nearing an armistice. 

Attorneys for Michael Hermalyn and DraftKings noted in a Tuesday court filing that the two sides “are negotiating a potential resolution” of a federal lawsuit that began days after Hermalyn left for Fanatics Sportsbook in February.

DraftKings sought and won an injunction that hamstrung Hermalyn’s day-to-day duties at Fanatics earlier this year, though Hermalyn is expecting his first victory in the bicoastal legal battle over the enforcement of his non-compete agreement as part of a separate case in California.  

U.S. District Court Judge Julia Kobick granted a request Tuesday from Hermalyn and DraftKings to stay proceedings in the federal case until Nov. 20, a day after a scheduled one-day trial in Los Angeles as Hermalyn seeks to get his one-year non-compete invalidated sooner than its Feb. 1, 2025, expiration date. L.A. County Superior Court Judge Tony L. Richardson noted in a court filing in the case that Hermalyn was “likely to prevail on the merits.”

DraftKings and a spokesperson for Hermalyn declined comment when reached about the potential settlement. 

Hermalyn moved from New Jersey to Southern California right before his Feb. 1 resignation from DraftKings as he sought to take advantage of the state’s strong laws against non-competes, even those entered into in other states. A victory for Hermalyn at the short trial next month wouldn’t trump Kobick’s injunction, but Hermalyn’s lawyers could use it in an attempt to cut a few months off Hermalyn’s current job restrictions that prevents him from associating with any current or former DraftKings customers. 

A settlement would also halt the hundreds of thousands of dollars in legal fees already paid in the case. Two weeks after Hermalyn’s resignation, one of his attorneys noted in a court filing that Hermalyn had racked up nearly $276,000 in legal fees—and the meter continued to run for both Hermalyn and DraftKings over the next eight months. 

DraftKings alleged in its lawsuit that Hermalyn hatched “a secret plan” to steal the betting giant’s “customer and business relationships” and use the “confidential information” to aid Fanatics Sportsbook, which seeks to establish itself as a major player in the legalized sports betting marketplace. 

As the legal battle kicked up days before the last Super Bowl, Hermalyn said he was “shocked and disappointed” that DraftKings would make “completely false and fabricated accusations” in DraftKings’ bid to keep him from working at Fanatics Sportsbook in any capacity.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

MLB Extends Leaves of Clase, Ortiz as Betting Probe Continues

Their paid non-disciplinary leaves have been extended “until further notice.”
Rob Bonta

Users Sue Daily Fantasy Companies After California Calls Them Illegal

Underdog Sports and Boom Fantasy were separately sued.
Michael Jordan

Texts From Michael Jordan, NASCAR Bosses Aired Out in Court: ‘I Have..

Jordan said he plans on “going down with fire” against NASCAR.
Barstool

Barstool Sues For Millions Over Failed Sponsorship Deal 

The media company says it was stiffed to the tune of $4.2 million.

Featured Today

Ohio State Buckeyes wide receiver Jeremiah Smith (4) celebrates with offensive lineman Donovan Jackson (74) after a touchdown catch against Notre Dame Fighting Irish in the first quarter during the College Football Playoff National Championship at Mercedes-Benz Stadium in Atlanta on January 20, 2025.

The Most Expensive Roster Year in College Football History

The House settlement created revenue-sharing—and a big NIL loophole.
August 26, 2025

‘You’re Going to Get Beat Up’: The Liberty’s All-Male Practice Squad

A select group suits up weekly to take on the defending champs.
August 24, 2025

The Honey Deuce Effect: How Tennis Perfected the Signature Cocktail

Sold every 1.5 seconds, they total more than $12 million in sales.
Dec 21, 2024; Austin, Texas, USA; Texas Longhorns quarterback Arch Manning (16) warms up as the Texas Longhorns prepare to play the Clemson Tigers in the first round of the College Football Playoffs at Darrell K Royal Texas Memorial Stadium.
August 23, 2025

Schools Are Hesitant to Allow PE Into Their Athletic Departments

Regardless of budget, schools don’t believe the risk is worth the reward.
Mar 12, 2024; Phoenix, Arizona, USA; Los Angeles Dodgers designated hitter Shohei Ohtani talks with translator Ippei Mizuhara in the dugout against the San Francisco Giants during a spring training baseball game at Camelback Ranch-Glendale.

Bookie Believes Shohei Ohtani ‘Was Aware’ of Interpreter’s Gambling

Mathew Bowyer ran the illegal gambling business used by interpreter Ippei Mizuhara.
Babe Ruth
August 26, 2025

Man With Babe Ruth’s Name Charged With MLB Identity Thefts

George Herman Ruth, 69, used hundreds of false names and Social Security numbers.
Mat Ishbia
August 27, 2025

Suns, Mat Ishbia Sued by Minority Owners Looking to Open Books

The limited partners have been seeking a buyout from Ishbia.
Sponsored

Gareth Bale on MLS vs EPL, Retirement & Buying Cardiff City

Gareth Bale shares his post-soccer business playbook.
Miami Heat logo
August 20, 2025

Former Heat Security Guard Pleads Guilty to Stealing Team Memorabilia

Prosecutors say he stole game-worn jerseys and sold them online for millions.
Jun 11, 2025; Eugene, OR, USA;A NCAA logo flag at the NCAA Track and Field Championships at Hayward Field.
August 15, 2025

Transgender Runner Sues Swarthmore, NCAA Over Ban

The suit says state and federal law supercede the NCAA’s transgender policy.
Jan 13, 2025; Glendale, AZ, USA; Minnesota Vikings defensive coordinator Brian Flores against the Los Angeles Rams during an NFC wild card game at State Farm Stadium.
August 14, 2025

Brian Flores Discrimination Suit Against NFL Can Go to Trial, Court Says

An appeals court ruled the NFL cannot compel Flores into arbitration.
Feb 14, 2025; Oakland, California, USA; Denver Nuggets mascot Rocky the Mountain Lion gestures in front of Terrell Owens (81) of Team Rice during the celebrity game ahead of the 2025 NBA All Star Game at Oakland Arena.
August 14, 2025

Former Nuggets Mascot Sues Team for Wrongful Termination

Drake Solomon says he returned from hip surgery to a “hostile work environment.”