PrizePicks, a U.S.-based daily fantasy sports operator owned by SidePrize LLC, has launched a federal lawsuit against former social media director Judah Huffman in the U.S. District Court for the Western District of Washington. The complaint, styled SidePrize LLC d/b/a PrizePicks v. Huffman, claims Huffman violated a one-year non-compete agreement, breached fiduciary duties, and misappropriated trade secrets upon taking a new role at DraftKings.
Details in the filing reveal that Huffman began working as Director of Social & Community for DraftKings’ sportsbook division on May 2. PrizePicks alleges he misled executives at the time of resignation, omitting plans to join DraftKings, and engaged in “surgical” deletion of files and communications from company-issued devices—presumed to conceal the transfer of proprietary information .
The lawsuit contends Huffman uploaded sensitive marketing strategies, social media performance data, and user engagement models—some via ChatGPT—for analysis of his non-compete clause. Shortly after, PrizePicks reports DraftKings increased its offer to $210,000 annually, suggesting Huffman’s leverage over confidential insights .
Pick’em Targeted at Sports Betting Rules in Many States of the Union, NC one of them.
Requested relief includes a court injunction to block Huffman from working at DraftKings under his purported non-compete, as well as damages recovery, citing provisions of the Defend Trade Secrets Act and common law breach of contract and fiduciary duty.
Analysts note that non-compete enforcement across state lines remains legally complex, but this suit underscores a growing trend in the gaming and DFS sector to vigorously protect intellectual property and player acquisition strategies.
PrizePicks previously faced regulatory penalties—such as a settlement in New York over unlicensed operations—highlighting its commitment to compliance. This legal escalation suggests the company is proactive in defending its business interests. Investors should monitor the suit's outcome; unfavorable findings could trigger reputational and operational implications, while a victory may signal increased defensiveness in industry hiring practices.
