DraftKings has filed a lawsuit against former executive Michael Hermalyn, accusing him of stealing confidential information before leaving for Fanatics. The lawsuit, filed in Massachusetts, claims that Hermalyn targeted high-volume clients and stole sensitive documents before his sudden departure. The civil suit alleges that Hermalyn knew DraftKings’ playbook for engaging and retaining VIP clients and timed his departure to coincide with the Super Bowl to interfere with DraftKings’ business relationships. It also claims that Hermalyn met with Fanatics CEO Michael Rubin at the Super Bowl and later persuaded subordinates at DraftKings to do the same. DraftKings is seeking an interim restraining order to prevent Hermalyn from providing any services to Fanatics. Hermalyn had also filed a lawsuit in Los Angeles County attempting to void his non-compete contract with DraftKings, but the company claims he fraudulently tried to establish California residency to invalidate the agreement. Furthermore, Hermalyn, who commutes to DraftKings headquarters in Boston from New York, was found at the offices of Fanatics in Los Angeles. Hermalyn’s contract with DraftKings included millions of dollars in compensation to not disclose confidential information or become a rival to the firm. Additionally, Fanatics has faced other legal challenges related to its trading card business. Panini America sued Fanatics, claiming it recruited employees and interfered with their contracts. Fanatics denied these claims. Amid this legal battle, the National Football League Players Association (NFLPA) terminated its contract with Panini to partner with Fanatics, despite an arbitrator’s decision to allow Panini to continue selling products licensed by NFLPA. In a filing, Panini alleged that Fanatics used unlawful means to recruit 36 employees and trigger contract termination provisions with World Wrestling Entertainment (WWE) and NFLPA.