A heated legal dispute has erupted between media industry veteran Michael Kassan and United Talent Agency (UTA) following his departure from the agency. Kassan, the founder of MediaLink, has claimed that he was deceived about his responsibilities and privileges at UTA, while the agency contends that he misused company funds. The ongoing legal showdown has taken the form of an arbitration action and a lawsuit, with both parties trading accusations.

According to Kassan's arbitration action initiated on March 12 against UTA, he alleges that the agency fraudulently induced him to agree to the sale of MediaLink, only to backtrack on the promises made regarding his role at UTA and allowances for his special expenses budget. Kassan resigned on March 6, preempting his potential termination by UTA the following day.

In response, UTA filed a lawsuit in Los Angeles Superior Court, accusing Kassan of treating company funds as a "personal slush fund." The agency claims that Kassan misused funds by diverting his special expenses budget to his S-corporation and using MediaLink's bank account to pay off personal credit card debt. UTA also alleges that Kassan failed to direct clients to deposit funds into a UTA-managed account, instead retaining control over a MediaLink account.

Sanford Michelman, Kassan's lawyer, vehemently denied the agency's allegations of theft, describing them as a desperate attack in response to Kassan's resignation and subsequent lawsuit. Michelman asserts that UTA's claims are an attempted diversion tactic to hide their fraudulent inducement of Kassan into agreeing to the transaction. Meanwhile, Bryan Freedman, the lawyer representing UTA, maintains that Kassan was terminated for cause and dismisses his claims as lacking merit.

The legal actions shed light on a tumultuous relationship between Kassan and UTA, which began when UTA acquired MediaLink in 2021. Allegations in the lawsuit claim that Kassan abused his authority by using company funds for personal expenses. The lawsuit alleges that Kassan wrote checks to himself from MediaLink's business account for personal charitable donations and improperly used company funds to pay off personal credit card debt, among other improper expenditures.

Kassan has offered a different account of his departure, stating that UTA engaged in a scheme to isolate MediaLink and pressure him into making pricing adjustments. He claims that the agency refused to invest in MediaLink and slashed its marketing spend, prompting his resignation. Kassan asserts that Zimmer's rejection of his resignation and subsequent termination were based on exaggerated claims regarding his marketing spend and charitable giving.

The legal battle between Kassan and UTA may potentially be moved into arbitration, as per the partner services agreement. Kassan's lawyer has indicated that he intends to seek sanctions over UTA's choice of venue for filing their lawsuit. Should the case proceed in the Los Angeles Superior Court, it could potentially uncover whether UTA reneged on promises made to Kassan during the merger negotiation process, which may impact future acquisition prospects for the agency.