After Block B filed a lawsuit against them for not paying the group since April of 2011, Stardom Entertainment has released a press release explaining their side of the story.
According to the agency, the company has paid the group what they were entitled to. While the group was supposed to paid on the 25th of every month, from the period of April 2011 to October of 2011, the company claims there was no earnings from the group, and thus was not obligated to pay them. Furthermore, their contract was changed in March of 2012 when the group members’ parents visited and an agreement to pay them every 3 months was made.
Block B has also sued the company over $70,000 that the CEO, Mr. Lee, took from the group members’ parents from promotional activities before disappearing, taking the money with him. Stardom Entertainment has revealed that Mr. Lee was only a manager for the company, but forged documents that called him the CEO. The company was not aware of these actions, but will be working with the police to take legal action against the man.
Stardom Entertainment has also claimed that Block B is not working alone in this lawsuit, but rather individuals behind the scenes are influencing the group’s decision to sue the company, creating an atmosphere of resentment and mistrust between the group and its agency.
The company also explained that the reason the Block B members haven’t appeared on talk shows. After the group’s scandal due to their inappropriate behavior during an interview in Thailand, the group went through an 8 month reflection period. Afterwards, the members weren’t able to make many broadcast appearances, placing the blame on the company when they had no say in the matter.
Stardom Entertainment will be working to try to resolve the issues brought up by the lawsuit.