Michael Kassan and UTA Suing Each Other After His Departure

MediaLink CEO Michael Kassan has left the business in a surprise move, with owner United Talent Agency claiming to have fired the media veteran, while he claims that he resigned. Both sides are now suing each other. Legal papers were filed March 12 by Kassan in Los Angeles for a sum of $25 million against UTA, citing four claims including breach of contract and fraud. Alongside UTA, the suit also names Jeremy Zimmer, UTA CEO; David Anders, partner and co-head of UTA Entertainment & Culture Marketing; and Julian Jacobs, partner and co-head of UTA Entertainment & Culture Marketing in New York. UTA has responded by filing its own action against Kassan, claiming "misappropriation of company funds." According to Kassan’s suit, his “resignation” has resulted in him waiving nearly $10 million in severance payments. The document also states: "Respondents engaged in a deliberate secret scheme to fraudulently induce Kassan to agree to a sale of MediaLink, only to then walk back the very promises made in the purchase contract, specifically regarding what Kassan would oversee at UTA and his 'special expenses.'" Several reports suggest that Kassan left the business March 6, but UTA claims he was dismissed the following day after an investigation. Michael Kassan and Jeremy Zimmer on the Convergence of Advertising, Celebrity, Media and Commerce In a statement, UTA claimed: “Michael Kassan was terminated for cause by UTA on March 7, 2024, following a thorough and exhaustive third-party investigation into misappropriation of company funds. We filed a lawsuit against him today and look forward to presenting the facts in court.” Founded in 1986, management consultancy MediaLink was acquired in December 2021 by UTA from Cannes Lions owner Ascential, in a deal worth $125 million. Kassan’s attorney, Sanford Michelman of Michelman and Robinson, also released a statement saying: “When Zimmer broke promises and began to impede the success of MediaLink, Michael was left with no other option other than to resign and file this lawsuit against Zimmer and UTA for breach of contract.” The statement continued: “Michael’s first priority is the success and continued growth of MediaLink, a company he started more than 17 years ago, and he looks forward to ensuring its continued success in the industry." Special expenses In Kassan's suit against UTA, Kassan alleges that UTA agreed to Kassan's "special expenses" budget consistent with "past practices" in the purchase and sale agreement. When Kassan sold MediaLink to Ascential, he states in the lawsuit that he received $1.5 million, or $950,000 after taxes, for a "special expenses" fund for Kassan to "create new business opportunities for MediaLink." The discretionary spend was paid upfront each year to “MEK Inc.” (which stands for Michael Eli Kassan). Kassan alleges in the suit that "Zimmer began to prioritize cutting costs, informing Kassan that portions of his contractually agreed-upon budget would be eliminated." According to UTA's filing against Kassan, which Deadline obtained, UTA alleges, "In utter disregard for his fiduciary obligations as a partner of UTA, media and advertising executive Michael Kassan has run rampant with his business expense accounts—wasting millions of UTA’s dollars on his lavish personal lifestyle." UTA's filing goes on to allege that Kassan required a personal driver and used UTA money to pay for the driver's apartment; Kassan used a company credit card for personal expenses; his wife received a company credit card, even though she has no affiliation with MediaLink or UTA; and Kassan used company funds to pay off $500,000 in credit card debt. UPDATE: Reached for comment by ADWEEK, UTA released a further statement from its counsel, Bryan Freedman. “Michael Kassan was terminated by UTA on March 7 and made aware well before that that UTA had grounds to fire him," Freedman said. "His claim against UTA has no merit and is an attempt to divert attention from the misappropriation of company funds that led to his termination.”

Leadership & Talent

Michael Kassan Out at MediaLink, Accuses Owner UTA of Fraud and Breach of Contract

UTA has also filed its own lawsuit against Kassan claiming 'misappropriation of company funds'

Stephen Lepitak

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Stephen Lepitak