Legal Battle Ensues as UTA and MediaLink Founder Clash Over Allegations of Financial Impropriety
ICARO Media Group
In a dramatic turn of events, the once-promising partnership between UTA and MediaLink founder Michael Kassan has descended into a bitter legal skirmish, with both parties filing competing actions and exchanging accusations of breach of contract and fraud. The dispute has caught the attention of the entertainment industry, even by Hollywood's standards.
The saga began on March 6, when Kassan resigned from UTA, the agency that had acquired his strategic company just over two years ago. The following day, Kassan wasted no time in taking UTA to court, filing a $25 million action demanding arbitration. According to Kassan's attorney, the lawsuit accuses UTA CEO Jeremy Zimmer of breaching the contract and making repeated broken promises, resulting in Kassan's resignation. The filing also alleges that Kassan chose to forego a nearly $10 million severance payment to compete with MediaLink, as allowed in his Partner Services Agreement.
However, UTA has a different perspective on the matter. They claim that Kassan was not the one who resigned, but rather that they fired him on March 7 for cause, citing his alleged involvement in financial misappropriation. UTA did not hold back in their response, filing a jury trial seeking a constructive fraud complaint against Kassan. UTA refers to Kassan as "shameless," adding to the contentious nature of the legal battle.
The lawsuits offer conflicting narratives regarding the promises made during UTA's acquisition of MediaLink. Kassan's demand for arbitration asserts that UTA engaged in a secret scheme to fraudulently induce him to agree to the sale of MediaLink, only to backtrack on the promises made in the purchase contract. Kassan highlights the success of MediaLink under UTA's ownership, particularly the $1.5 million "discretionary spend" he received to build relationships with clients and staff.
The dispute also revolves around the role of UTA Marketing, which was supposed to become part of MediaLink. Kassan claims that UTA Marketing bosses David Anderson and Julian Jacobs were meant to be part of his executive team and report to him, but UTA argues otherwise.
Investigations into Kassan's use of corporate funds and resources have reportedly been ongoing for months, adding another layer of complexity to the case. UTA's acquisition of MediaLink may prove to be a costly decision, given Kassan's history of legal disputes and multi-million-dollar lawsuits with previous employers.
The fallout from the partnership's dissolution has been explosive, with Kassan willing to forego his severance payment to compete against MediaLink with a newly formed company. Nevertheless, Kassan remains open to discussing an amendment to the agreement with Zimmer, though the window for such negotiations is limited.
As both sides present contrasting accounts, the ensuing legal battle is sure to captivate the industry. The court will be tasked with reviewing the contract and determining the validity of the claims made by each party involved. Only time will tell how this high-stakes dispute will ultimately be resolved.
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