PrizePicks has resolved its lawsuit against former Head of Social Media Judah Huffman, ending a delayed courtroom battle after Huffman left for a similar position at DraftKings.
The case alleged Huffman stole trade secrets before resigning from the company without disclosing his next role.
Key takeaways
- PrizePicks has resolved its lawsuit against Judah Huffman after reaching a confidential out-of-court agreement.
- Huffman must delete PrizePicks data from ChatGPT, highlighting AI’s legal risks with trade secrets.
- California’s AG may soon classify DFS as illegal gambling, pressuring DraftKings and FanDuel operations.
In the initial lawsuit, PrizePicks argued that Huffman uploaded proprietary information into ChatGPT, such as brand planning and company team goals after receiving a letter offering employment. PrizePicks described this information as “highly sensitive.”
Huffman and PrizePicks agreed to a consent order a month ago requiring Huffman to not use or disclose confidential information from PrizePicks. Huffman was also asked to remove all uploaded information from his ChatGPT account and confirm he had done so under the penalty of perjury.
In a conversation about the settlement with Covers.com, a PrizePicks spokesperson referred to the company's official statement, saying that “Huffman has complied with the non-competition agreement, and the matter has been resolved."
PrizePicks announces DFS partnership with the Dodgers
In other news, PrizePicks signed a new multi-year deal with the L.A. Dodgers to be the team's official daily fantasy sports partner. The deal includes a mix of digital, social, and in-stadium branding initiatives designed to increase PrizePicks' visbility among baseball fans.
The agreement gives PrizePicks banner placement and LED signage throughout Dodger Stadium, including concourses and the outfield pavilion, which are high-traffic areas. The firm will also receive visibility on the Dodgers' multiple digital media channels, including social sites and radio broadcasts.
“Partnering with the Dodgers is an incredible opportunity to align with one of the most respected organizations in sports,” said PrizePicks Chief Marketing Officer Mike Quigley. “As the Dodgers chase another championship title, we’re looking forward to delivering unique moments that bring fans even closer to the action.”
California AG to decide on DFS illegal gambling
Despite dropping its lawsuit against DraftKings, PrizePicks and other daily fantasy sports operators may face more turmoil as California proposes banning online fantasy sports.
California Attorney General Rob Bonta will release a legal opinion that daily fantasy sports (DFS) sites are illegal under existing state gambling statutes. His office hasn't made an official statement, but people familiar with the matter shared information with KCRA 3.
Although Golden State online sports betting remains illegal, DFS proceeded largely unscathed, something that caught lawmakers and tribal gaming interests' attention. Critics argue DFS contests have elements of chance that violate state gambling statutes, but they're touted as games of skill.
If it stands, the ruling will have significant repercussions, including forcing DFS operators to close down in California, the state with the United States' largest population.
