There’s trouble with my favorite rookie group, Block B! It was revealed that Block B has filed a lawsuit against their agency Stardom Entertainment to have their contract nullified. It seems Stardom has failed to pay Block B in over a year.
The lawsuit was revealed yesterday:
“During the signing of the exclusive contract, it was promised that in addition to providing proper training opportunity and facilities, we would be paid on every 25th of the following month… However, the agency has not paid us for nearly one year since April of 2011.”…It started last year in March when one member’s contract was ended and his portion of the pay was calculated… Appearance fees from events as well as pay from SBS drama ‘Phantom’s OST, MBC drama ‘Golden Time’ OST, and funds collected from the inaguration of our Japanese fan site’s fan club, and more for a total of 10 things, have been omitted….The CEO of the agency, Mr. Lee, has also disappeared with the 70,000,000 KRW (~66,000 USD) that he collected from the members’ parents to use for promotion and production costs… He never listened to the members’ opinions or thoughts on their activities and directed only in his way.”
The members released an official statement on the lawsuit today:
This is the official statement of the 7 members in response to Stardom Entertainment’s (Stardom below) statement on January 4th, 2013.
Firstly, we are very sorry to cause worry to all the fans who love and care for Block B from the start of the new year.
The Block B members took a long time thinking about their decision to nullify their contract and file for an injunction. However, they have come to their decision because of the many things that happened from the start of the contract with Stardom, which [caused them to decide that they] cannot trust Stardom anymore. We would like to let you know that the choice was unavoidable.
Stardom currently states that they have straightened out all the profit [issues] as if there was a mutual agreement about the balance distribution calculation, but this is false. The actual truth will all be revealed in court.
The explanation that Stardom gave about the previous CEO, Mr. Lee, is also false, and they are just trying to deny responsibility. Stardom has explicitly and implicitly agreed to use the title of CEO for Mr. Lee from the start.
On other matters, Stardom’s statement that the request to nullity the contract is because of dissatisfaction about appearing on television and because of a mastermind behind the other members is also completely different from the truth. It is nothing but them trying to derogate the members’ unavoidable decision after careful consideration.
We respectfully ask Stardom to stop making comments that mislead the media and the public.
We apologize once again about causing worry to the fans. The Block B members promise to respond to the fans’ love with a more mature side.
January 4th, 2013
Law firm Shinwon, legal representative of the 7 Block B members