In relation to United Talent Agency’s 2021 acquisition of the consultancy firm MediaLink, the agency has been accused of breach of contract and fraud. Michael Kassan, founded of MediaLink and UTA partner, claimed that UTA CEO Jeremy Zimmer and two other executives engaged in a bad faith during the acquisition, as per documents filed with mediation service JAMS, which was reviewed by Variety.
This prompted Kassan to step down last week, the filing says. A UTA spokesperson said that Kassan was fired for cause following an “an exhaustive third-party investigation into misappropriation of company funds.”
MediaLink is known for hosting lavish and popular parties at events like the Cannes Lion festival and global editions of CES. The company is additionally contracted to assist in staffing high-level C-suite positions and developing corporate strategies. Among their clientele are notable names such as J.P. Morgan Chase, AT&T, and Conde Nast. Recently, on Tuesday, it earned recognition as one of Forbes’ top management consulting firms in the nation.
Kassan claimed that Zimmer and colleagues Julian Jacobs (Zimmer’s former assistant) and David Anderson failed to deliver on key promises of the acquisition.
The filing says that UTA made MediaLink a “silo,” pressuring Kassan to dramatically raise fees for outside customers while offering considerable discounts to UTA clients.
The filing also says that Kassan was directed to stop offering executive search services for corporate clients in order to benefit of another UTA-owned company. Kassan is seeking damages worth no less than $25,000,000 and compensation for attorneys fees.
“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,” said Kassan’s attorney Sanford Michelman of Michelman and Robinson.
“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,” Michelman added.
In a full statement, UTA said that Kassan “was terminated for cause by UTA on March 7th 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.”
Kassan’s own filing contains a resignation letter dated March 6.
The document alleged that Zimmer tried to slash costs at MediaLink. Kassan is known to spend generously to woo clients, and UTA pushed back on the spending.
“Michael is the kind of guy who would tell you that if you talk to him for ten minutes, you’re getting something from Brunello Cucinelli to thank you for your time,” Variety quoted a source as saying.
Although the specific details of the legal action taken by UTA against Kassan were not readily accessible, Kassan’s arbitration request mentions a “sham audit” of MediaLink. Following these disputes, Kassan stepped down from his position and forfeited a nearly $10 million severance package from UTA to preserve his ability to compete against them, as stated in the filing.
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