Update and more details on Block B vs. Stardom Ent.

[kanbinayume.livejournal.com]

Block B “Hundreds of Millions KRW Unaccounted For” vs Agency “There Is No Credit History”

At the end of the hearing for Block B’s injunction against agency Stardom for the cancellation of their exclusive contract, both sides are in tight conflict and unable to reconcile their differences.

On February 22, 2:00pm, at the Seoul Central District Court, room 358, the second round of interrogation for Block B’s lawsuit against Stardom for the cancellation of their exclusive contract took place.

Parties from Block B and the defendant Stardom did not come to court, but legal representatives from both sides attended and showed sharp oppositions.

Block B’s attorney went first and revealed, “Block B lost trust in the agency that breached the contract. If the lawsuit extends over a long period of time, Block B will receive a lot of damage so they ended up filing for an injunction.”
Their attorney continued, “Even until now, there have been over 20 instances in which the agency did not keep up in their duty of balancing the accounts and the amount is reaching hundreds of millions KRW (about 100,000 USD). They also decided to change the account balancing day on their own, and they only hurried to take care of a part of the accounts after leader Woo Jiho (Zico) send them a certificate of contents. However there are still parts of the payment that have not been calculated. We heard about the account balance daily reports on the agency’s side, but their explanation that some are missing by accident does not make sense.”

They added, “The agency passed on expenses to the members and their parents. Expenses from transportation, wardrobe, food, lessons, hair and makeup, and such should have been paid partially by the agency, but they started notifying the parents of the Applicants and deducting from the profits. That is not all, the cost of flights that should have been paid by the Respondents were also paid by the Applicants.”

“Meanwhile, the members went to CEO Cho Joonghoon (Cho PD) so they could resolve this problem, but he would not meet with them and they eventually had to send in a certification of contents,” said the attorney, explaining the point of the injunction Applicants.

In rebuttal, Stardom’s attorney said, “There are many assertions from the Applicants that are different from the truth. There are also statements of defamation. The agency trained Block B from 2009 to 2011, so it is unreasonable to go in the course of cancelling instead of requesting for correction. There are claims that account balances are missing, but there have been no deposits into any bank accounts that the Respondents manage, so even they have doubts about the situation.”

This attorney brought up the issue of the resignation of agency manager from Stardom. “There are resigned staff who are behind this incident. Along with their resignation they are conspiring with the members and proceeding with this lawsuit. We even have proof. They are appearing to nominally go through legal proceedings, but they have been conspiring since the time they were working at the company,” claimed the attorney.

The judge who heard the argument from both sides concluded the interrogation with, “The Applicants must turn in additional evidence that can be explained. In the case for injunctions, summons for an inquiry of truth are not accepted. Submit a different a means of evidence, and the Respondent will be given the opportunity to submit material that can refute this evidence.”

The results of the injunction filed against Stardom by Block B are planned to be announced in 3 weeks.

Last month on the 3rd, Block B filed an injunction for the cancellation of their exclusive contract through legal representatives from law firm ShinWon. Block B asserted to the court that payments were not calculated from last year April up until close to a year, training facilities and opportunities were not provided, and that there were many instances when they themselves had to make meal and car payments.


Source: OSEN via NATE
Translated By: Youngha@ BLOCKBINTL

...no...deposits??

Comments

[cast-no-shadow0.livejournal.com]

I know it's pretty standard for the costs of training to get taken before profits are handed out to idols, but does that even include things like flights once they debut?? I guess it all depends what the contract says. I know Beast said they had to pay for the loss Kikwang accumulated from his solo debut.

The majority of idols have it rough, from the physical toll to the financial pressure on them. I think idols like DBSK, who live lives of material luxury, are the exception more so than the rule to idols' financial success.

[flumes.livejournal.com]

i think you just have to makeit huge huge huge to live that kind of life...shitty.

[flumes.livejournal.com]

i hope they get their money.

[iznanassi.livejournal.com]

Block B should definitely not be paying for all the crap they are, no other idol does that. If the company let staff resign and take all this money in the mean time, imo they're still responsible.

[cairistiona.livejournal.com]

God Stardom just keep getting shadier and shadier...

[kingalexarnold.livejournal.com]

Meanwhile, the members went to CEO Cho Joonghoon (Cho PD) so they could resolve this problem, but he would not meet with them

fucking douche

[in-noctem.livejournal.com]

Cho PD how could you??

Why does Stardom keep insisting that the ex-staff are conspiring against them? Maybe they realized how shitty Block B was being treated and wanted to help them get their money back.

I wonder how much money the boys spent on their own clothes and plane tickets and stuff and if it was from their savings or something :c

[avieyal.livejournal.com]

What I've been hearing is that P.O's dad helps out a lot in terms of clothing and stuff (apparently he's quite rich?). I guess their parents are helping them pay for things when needed. Which seems to be a lot, going by this.

There's another article out from akp about stardom filing suits against those ex-employees, so the swindling claim might have some truth to it, but I don't think Block B would turn against Stardom just because someone talked them into it.

At least they're not stopping Block B's individual activities, smearing Block B's reputation or blaming Block B directly for anything.

[sub-divided.livejournal.com]

Are most idols really not paid until they have brought in more money than their training cost? Does that mean that idols who train for a long time have to work that much harder for longer before they ever see any money?

It's not that different from shitty major label contracts in the US and Europe but if the money is disappearing without being properly accounted for that's even shadier.

[aaalove.livejournal.com]

Yeah, whatever the company tries to say, I just can't see their side being right. Why would Block B conspire to do this? They just want their money, and those expenses should be covered, by the agency or whoever is hiring block b. Stardom is just shady, when it's more than one artist...things look different.