Steinberg Files Suit Against Former Partner

Claims conspiracy to steal clients

Los Angeles, Aug. 16, 2001 - In the latest salvo in a year-long dispute, agent Leigh Steinberg filed a lawsuit in federal court against his former partner David Dunn. Steinberg is accusing Dunn of conspiring to steal his clients and preparing a blackmail scheme.

Dunn left the firm of Steinberg Moorad & Dunn earlier this year. A substantial number of athletes followed Dunn to his new company, Athletes First. According to Steinberg, Dunn plotted with another employee to steal Steinberg's football business before they left. Steinberg is seeking a preliminary injunction to prevent Dunn from representing the 40 clients who left Steinberg Moorad & Dunn. Both parties have already filed countersuits in state court; the federal suit will replace all of the state claims except those against two of Steinberg's other former employees.

The attorney for Athletes First, said there was no wrongdoing on Dunn's part, that his "conduct has been entirely above board" and "what SMD fears is competition." Steinberg commented that he is "dismayed that my former employees apparently plotted to blackmail my sports agency, its parent company, and me," according to the Associated Press.

Source:
Associated Press, "Sports Agent Files Federal Lawsuit," 8/14

Amy Armond