Previously, Blockberry Creative’s second-largest shareholder, Donuts, invested 3.5 billion won (approximately $2,964,500) in Polaris Entertainment, but the agency did not fulfill the investment contract. In the first trial, the court ruled that Polaris Entertainment must return the full investment, and the entertainment company filed an appeal.
In February, the case was handed over to the High Court, but the appeal was dismissed when neither party attended the hearing.
According to the court’s statement on September 14, the Seoul High Court recently upheld the decision made in the first trial regarding the appeal suit filed by Blockberry Creative and its parent company Polaris Entertainment. They explained, “LOONA’s representative failed to appear more than twice on the court dates for the appeal trial, so we have ruled to dismiss the appeal.”
The entertainment company must return 3.5 billion won (approximately $2,964,500) to their investor Donuts.
Last year, Polaris Entertainment was involved in a case with Donuts regarding an unreturned lease deposit. In 2017, the agency teamed up with Donuts to begin their girl group project for LOONA, and Polaris Entertainment received 400 million won (approximately $338,500) from Donuts as a deposit to lease a space. The suit was filed by Donuts after Polaris Entertainment only returned 40 million won (approximately $33,850) and did not return the remaining amount of 360 million won.
In October 2019, the Seoul Central District Court ruled that Polaris Entertainment and its CEO Lee Jong Myung must pay Donuts 360 million won (approximately $304,700) for the lease deposit, as well as additional compensation for losses incurred due to delays.
In accordance with the investment contract, Donuts is expected to claim rights over LOONA in order to prevent Blockberry from transferring the group to a different agency.
LOOПΔ 3rd Mini Album [12:00]
2020.10.19 pm6 (KST) Release
source: soompi, naver 1 2, @loonatheworld, loonatheworld