The legal confrontation between United Talent Agency (UTA) and its former partner Michael Kassan intensified this week, as Kassan initiated a defamation lawsuit against UTA’s legal counsel.
Kassan alleges that UTA’s attorney Bryan Freedman engaged in libel and slander, citing Freedman’s statement in a Deadline article where he labeled Kassan as “a pathological liar.” Kassan seeks monetary damages totaling at least $125 million, in addition to punitive damages and other expenses.
Kassan’s attorney Sanford Michelman asserted, “To render a statement such as he did illustrates the fact that all Mr. Freedman and UTA are doing are trying to block Mr. Kassan from competing by hurting him in the press as alleged in Mr. Kassan’s demand to arbitrate.”
In response, Freedman rebuffed Kassan’s accusations, asserting that “facts are not defamation.” He further contended that Kassan’s actions are intended to fabricate a false media narrative and divert attention from his alleged fraudulent activities.
The legal clash between Kassan and UTA revolves around a contentious dispute regarding a contract related to the $125 million acquisition of MediaLink, a media and market advisory firm founded by Kassan, by UTA. Each party accuses the other of breaching the contract, drawing significant attention from the entertainment industry.
UTA asserts that it entered into a partnership with what it believed to be a reputable businessman. However, over the past two years, the agency alleges it discovered that Kassan’s spending was excessive, accusing him of “wasting millions of UTA’s dollars on his lavish personal lifestyle.”
Kassan, on the other hand, contends that UTA was fully aware of his spending habits and maintains that his firm remained profitable under UTA’s ownership. He alleges that UTA failed to adhere to the terms of the agreement, including promises regarding the reporting structure within UTA’s marketing group.
Michelman, Kassan’s attorney, claims that while UTA benefited from MediaLink through free media consulting and introductions, MediaLink did not receive reciprocal benefits from the relationship.
“The integration just wasn’t working,” Michelman stated in a press briefing, referring to MediaLink’s acquisition by UTA. “Michael Kassan was realizing this was not a two-way street. This was a bike path and a highway. UTA was a highway to grab the benefits of MediaLink and MediaLink was getting none in reverse. The integration was a disaster.”
UTA has refuted Kassan’s allegations in legal filings and public statements. Freedman, in a previous statement, dismissed Kassan’s claims against UTA as lacking merit and characterized them as an attempt to divert attention “from the misappropriation of company funds that led to his termination.” In one filing, the agency accused Kassan of having a “tendency to operate within ‘gray areas’ and to usurp corporate opportunities and resources for his own personal gain.”
Kassan stated that he resigned on March 6 and voluntarily waived his $10 million severance package to retain the right to compete after departing the firm.
“Knowing that Kassan’s profession consists of providing important strategic advice to the largest companies in the world, on behalf of his clients, Freedman took aim at the heart of Kassan’s livelihood and profession and engaged in a sharp-shooting character assassination plan to further the scheme of trying to create a non-compete by defamation,” Kassan asserted in his defamation lawsuit against Freedman.
UTA has argued in legal documents that Kassan would not be entitled to exercise his stated right to compete if he were terminated with cause.
Freedman previously stated to The Times that UTA terminated Kassan on March 7 and had informed him well in advance that UTA had grounds for his dismissal.