Daily fantasy sports (DFS) leader PrizePicks has filed a federal lawsuit against its former Director of Social Media, Judah Huffman, alleging he stole highly confidential trade secrets by uploading sensitive company documents to his personal ChatGPT account just weeks before resigning to join rival DraftKings. The complaint, filed in the U.S. District Court for the Western District of Washington, paints a picture of calculated deception, evidence destruction, and violation of a non-compete agreement.
The Core Allegations: Theft via AI and Deception
According to the explosive 42-page complaint, Huffman, while still employed at PrizePicks in April 2025, uploaded two critical documents to his personal ChatGPT account:
- A “Brand Planning Document”: Allegedly containing detailed market research, analyses of PrizePicks’ brand, market share, user demographics, growth opportunities, and future branding plans – the culmination of significant investment.
- “2025 Team Goals”: Reportedly outlining the entire marketing organization’s confidential goals, strategies, metric targets, and user growth plans.
PrizePicks asserts these documents constitute its “most closely guarded trade secrets” regarding marketing operations, developed at substantial cost. The company strictly prohibits inputting sensitive data into unauthorized AI platforms like personal ChatGPT accounts, citing its Data Management and AI Policies which mandate a “zero-retention policy” for such data in public AI models.
Violations Galore: Non-Compete, Confidentiality, and Destruction
PrizePicks claims Huffman violated multiple provisions of his May 2024 Employment Covenants Agreement:
- Non-Compete: The agreement allegedly prohibited Huffman from working for a competitor (defined as any entity in the DFS business) in a similar capacity for one year post-employment.
- Post-Employment Disclosure: Huffman allegedly failed to provide DraftKings with a copy of his restrictive covenant agreement or inform PrizePicks about his new role, as required.
- Confidentiality & Return of Property: By allegedly retaining the documents via his ChatGPT account and destroying data on company devices, Huffman violated obligations to return all company property and protect confidential information.
- Duty to Disclose: The lawsuit claims Huffman breached his fiduciary duty of loyalty by failing to disclose his negotiations and impending move to a direct competitor.
PrizePicks also accuses Huffman of violating the federal Defend Trade Secrets Act (DTSA) by misappropriating confidential information that derives economic value from not being generally known and was subject to reasonable protective measures (secure document systems, data-loss prevention software, mandatory training, strict policies).
Seeking Immediate Relief
PrizePicks is seeking a court order to:
- Immediately prevent Huffman from working for DraftKings.
- Enjoin him from using or disclosing any PrizePicks trade secrets.
- Force him to remove all PrizePicks information from his personal ChatGPT account and any other personal storage.
- Prevent further destruction of evidence.
- Award damages (including punitive damages and legal fees) for breach of contract, breach of fiduciary duty, and violation of the DTSA.
This lawsuit throws a spotlight on the evolving risks of AI platforms in corporate espionage and the lengths companies will go to protect trade secrets. Huffman and DraftKings have not yet publicly responded to the allegations. The court will now need to decide whether to grant PrizePicks’ urgent request for an injunction halting Huffman’s work at DraftKings while the full case proceeds. The outcome could have significant implications for non-compete enforcement and data security practices involving AI tools.
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- Source: https://sportshandle.com/former-prizepicks-executive-accused-of-stealing-trade-secrets-before-joining-draftkings/