The bitter battle between Beverly Hills-based United Talent Agency and former partner Michael Kassan centers on allegations of exorbitant spending and a $950,000 annual expense account, but Kassan The company said it received this benefit as part of its 2021 acquisition of the company. of his company.
UTA acquired Kassan’s marketing consulting firm MediaLink for $125 million in December 2021, part of an effort to deepen the talent agency’s relationships with major brands such as Google, which MediaLink had access to. was. At the time, UTA brought on Kassan as a partner.
Kassan and UTA filed dueling lawsuits this week accusing each other of breach of contract.
UTA claims it thought it had a partnership with a reputable businessman, but learned over the past two years that his spending was out of control. Kassan said UTA is well aware of his spending habits and that his company has remained profitable during his tenure at UTA.
The Hollywood talent agency acquired MediaLink from Ascential Group. The deal required Kassan’s approval. Mr. Kassan founded the business in 2003, recognizing the need to work with major advertisers who wanted to display products such as cars and beverages prominently on television shows. And other platforms can become lucrative niche markets.
Mr. Kassan has agreed to remain as CEO and Chairman of MediaLink. Mr. Kassan’s complaint alleges that shortly after joining UTA, Mr. Kassan told an executive that he would receive $1.5 million upfront each year and that he would receive “$950,000 (after taxes) as he saw fit.” “It can be used for,” he said.
In a lawsuit filed late Tuesday in Los Angeles County Superior Court, UTA alleges that Kassan “has contributed to UTA’s lavish personal lifestyle,” including allegations that he used company funds to pay a housekeeper and rent an apartment. The company announced that it had fired Kassan for “wasting millions of dollars.” his personal driver.
“[Kassan] “He allowed his wife to have a company credit card even though she had no connection with MediaLink or UTA,” UTA’s lawsuit states. (In response, Kassan’s representatives said that Ronnie Kassan’s credit card purchases were made on behalf of his husband and MediaLink, including media executives including Zimmer and others who received gifts. It also included a list of prominent bankers.)
“Not only did Kassan insist on private flights, but he also spent a small amount of UTA’s money on luxury travel, including hundreds of thousands of dollars in private tickets for his entire family. Kassan acknowledges that the information was personal in nature and not for a reasonable business purpose,” UTA’s lawsuit states.
Lawyers for Mr. Kassan filed a breach of contract lawsuit Tuesday, alleging that UTA knowingly agreed to a $950,000 expense account and other provisions when it acquired Mr. Kassan’s New York-based marketing consulting firm. I woke you up.
Mr. Kassan’s complaint was submitted to the JAMS Mediation Service.
Mr. Kassan alleges that UTA reneged on its promises, and his lawyers said in a letter to UTA last week that UTA and agency CEO Jeremy Zimmer ) pointed out that he was well aware of Mr. Kassan’s extravagance.
A March 8 letter from Sanford Michelman’s attorney, Sanford Michelman of the firm Michelman & Robinson, said that before the transaction was completed, Zimmer had expressed concerns about Kassan’s “behavior.” He openly admits that he has accepted “.
Kassan’s 27-page personal services agreement, which was included as part of the legal claim Kassan filed, states that “UTA will not be liable for any normal business expenses and ‘special expenses, as long as they are consistent with past company practices.’ It states that Kassan will be reimbursed up to $950,000. ”
The dispute came to a head last week, and Kassan resigned on March 6, according to the documents.
Kassan waived nearly $10 million in severance pay to avoid entering into a non-compete agreement with MediaLink, according to the complaint. UTA maintains that Mr. Kassan is still bound by a non-compete agreement.
“Michael Kassan has agreed to sell his company MediaLink to UTA in what he believes will be a great partnership for both companies,” Michaelman said in a statement. “However, it became clear that Jeremy Zimmer had a secret plan to not honor his contract, and when Michael confronted him, Zimmer refused to honor his contract.”
Michelman said Kassan “has no choice but to resign and sue UTA.”
Meanwhile, UTA said it had previously notified Mr. Kassan that it was investigating his spending. Kassan agreed to new spending protocols in February, according to documents filed in the JAMS lawsuit.
“Michael Kassan was terminated by UTA on March 7, and UTA has long known that it had grounds to terminate him,” Brian Friedman, an attorney representing UTA, said in a statement. said. “His allegations against UTA are baseless and an attempt to divert attention from the misappropriation of company funds that led to his termination.”
According to UTA’s complaint, from shortly after joining UTA, Kassan worked to “ensure that company funds were used to pay for his lavish personal expenses, with the goal of leaving no trace.” “began to circumvent or fail to maintain standard administrative processes.” ”
That included using UTA funds to pay off about $500,000 in credit card debt, according to the complaint.
UTA is seeking unspecified damages.
Mr. Kassan’s representatives vehemently objected to UTA’s claims that Mr. Kassan’s huge spending amounted to fraud.
Kassan said another dispute arose over Zimmer’s agreement to let Kassan run UTA’s entertainment and marketing division once the 2021 deal is complete.
The suit alleges that Kassan was told he would be responsible for long-term strategy and day-to-day operations, and that UTA executives “secretly concocted a plan after the acquisition closed.” [that] As promised, UTA Marketing will not report to Kassan. “This decision resulted in MediaLink becoming a ‘silo’ within the agency,” the lawsuit states.
Kassan also argued that UTA’s investment in MediaLink failed, noting that “while UTA owned MediaLink, Kassan increased top-line and bottom-line revenues and profits.” But UTA cut marketing spending and “curtailed Kassan’s ability to continue his vision of building community,” Kassan alleged in the complaint.
Kassan is seeking more than $25 million in damages, according to the suit.
His attorney, Michelman, said there was “further evidence of bad faith” in UTA’s response because “Zimmer, his wife, and other UTA executives … benefited from the expenses now being complained of.” It is claimed that there is.
“For example, Zimmer complained that Kassan’s use of commercial aviation was not authorized, but Zimmer (and his wife) were on the plane exactly trying to fabricate a ’cause’ (of which there were many).” The complaint alleges.
