Block B Takes Their Company To Court! – UPDATED

block b 2

Heads up to BBCs (Block B fans)!

Block B is preparing to sue their company for not paying them and has asked for their contract to be canceled.

Zico and Kyung just took “Block B” out of their Twitter descriptions/usernames since the group’s name belongs to their company.

Their statement from Seoul Central District Court says:

“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.” [source]

block b 3

For confused fans, Tumblr user ohmydari has posted a more comprehensive article on the situation as follows:

Block B is “suing, or filing an injuction” against their company (BNS) because they have not been getting paid properly since April of ‘11. Facts:

  1. The CEO of Stardom took about 700,000 won from the members parents and disappeared with it.
  2. They are suing as a group. This is suing against their company. They are all suing. They are all upset. They are not upset with each other. Disbandment has not been spoken of, only terminating their contract with BNS if they do not pay them their due regularly and what they owe them and their parents.
  3. The company (including CEO and Cho PD) have not spoken out on this. Neither have other groups or artists under BNS.

Things that have not yet been confirmed 100% but are circulating:

  1. They had little to none support from their company.
  2. P.O paid for all their stage outfits, out of pocket.
  3. Their staff worked for them using their own money.
  4. The “$7” comment that struck the Thai scandal (IM SORRY GUYS THIS IS FOR PEOPLE WHO WANT TO KNOW I HATE THAT THIS IS BEING BROUGHT UP AGAIN TOO) was a jab at their company. Yes, this has been possibly going on for that long.

FAQ:

  1. But what does other companies have to do with this?
    Fans are speculating where they should move to if their contract is terminated.
  2. What is the “big three” people are referring too?
    The Big Three is just a nickname for the top three agencies: SM, YG, and JYP.
  3. But Cho PD isn’t involved because he’s not the CEO that took money right?
    Nothing more has been confirmed on who is or is not actually involved. All we know is that Stardom was not paying, and Cho PD is a part of Stardom. Let your thoughts run.
  4. What will happen if Block B terminates their contract?
    No one can know for sure.
  5. Isn’t this what happened to JYJ/DBSK?
    Vaguely.

Again, the credit for the above explanation goes to ohmydari @ tumblr.com

If successful and all goes well, Block B will be leaving their company… most likely under a new name.

Let’s hope that if they move to a new company, it’ll be together like Shinhwa had done in the past.
Hopefully this will bring them closer together as a group and that their new company will take them all in as the group they have always been!

UPDATE:

Brand New Stardom has released a statement of their own!
In it, they blame the “Mr.Lee” mentioned in the Block B statement of impersonating the CEO and stealing the money from Block B after tricking them. Many people have commented about this, wondering how it was possible that Block B/their parents hadn’t known who the real CEO was at the time.

Some have also pointed out how strange the claim that Block B didn’t make “a single earning” during their debut period is. They also wondered how anybody can live on a payment that only comes between 1-3 months and questioned the company’s care towards Block B.

However, there is a good chance that Brand New Stardom really is telling the whole truth and that this situation will end up with a similar result as KARA’s lawsuit against their company. BNS did admit that they hadn’t been paying Block B, after all. Looking at it with a different light, one might consider it responsible to admit they can’t afford to pay the group and have the payments altered instead of continuing to make false promises.

Who knows! I just hope this will all clear up soon in a positive way for Block B!

Hello, This is Stardom.

We are sorry to greet you with this kind of situation during the beginning of the New Year. We wanted to offer an explanation as a part of what has been reported is false.

– On the issue of not being paid

Stardom Entertainment has calculated all the earnings of our agency artist Block B and have paid them. Regarding the calculations, we have fulfilled all the calculated payments.

In the contract, when there is an earning, the pay was supposed to be made on the 25th of every month. However, starting from April of 2011 to October of the same year, there was not a single earning during those 6 months, and thus, during then we could not pay out every month.

We want to make clear at this point that although the pay was scheduled to be issued out every month in the original contract, when the members’ parents visited in March of 2012, we settled to change the pay schedule from every month to every three months.

– On the issue of the agency CEO swindling money for promotions and such received from the parents of the members

Mr. Lee, who was first hired as a manager, falsely used the name of ‘CEO’ by forging documentation and it is true that he swindled money from some of the members.

Mr. Lee deceived the agency as well as the parents of the members and met separately with the parents and disappeared with the money of the agency and the parents.

The agency belatedly learned of this, and at the the time, the members’ parents decided to hold off on pursuing legal action as they were concerned about bringing harm to Block B.

Another victim of Mr. Lee has filed against him and the police are looking for him, we at Stardom are hoping that Mr. Lee will be caught soon.

The individuals who helped Mr. Lee during his fraudulent deeds are no longer with the agency and are putting the blame on the agency who is managing the Block B members. Regarding this we will be taking legal action [against the individuals].

– On the issue of the lack of broadcast appearances

After much preparation by Stardom, in February of 2012 Block B made a comeback; however, while in the midst of active domestic promotions, due to the incident that happened at the Thailand interview, [the members] had to go through an eight month reflection period. Because the members weren’t able to make as many broadcast appearances after then, it seems the members of Block B are holding a grudge against the agency.

Stardom has also experienced difficulty during that period, and after working hard so that Block B could promote again, we were able to have them return to broadcast.

– On the existence of individuals behind Block B

We cannot help but lament as we have confirmed that there exist individuals who are encouraging and controlling the members behind this situation of requesting for the nullification of their exclusive contract when we have tried our best to provide even the smallest earnings to our agency artists, and cannot help but lament.

The individuals have purposely used the issue of pay to block the communication between the agency and the members and their parents, and have created mistrust towards Stardom; and we were able to learn from conversing with the members and their family recently that these individuals, who have done wrong while they were working within Stardom, have put all the blame on the agency.

– On our future course of action

To communicate with the Block B members, we sent over documents to their homes during the end of the year, and while preparing to meet them this afternoon, we learned of the lawsuit requesting for the nullification of their exclusive contract through articles on the internet. Despite that, Stardom promises to try our best to resolve the misunderstanding between the agency and Block B.

We will try our best so that we can greet you with better news. Thank you.

[source]

 

UPDATE #2

B-Bomb's Twitter

B-Bomb’s Twitter

Block B has responded to Brand New Stardom’s statement.
Also, B-Bomb has added “7 People Together Forever” to his Twitter background.
Though Zico and Kyung have removed “Block B” from their Twitter, B-Bomb hasn’t.

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 contract is nullified 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

[source]

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3 thoughts on “Block B Takes Their Company To Court! – UPDATED

  1. Wow, I hope things go well for them. T_T It really hurts knowing how hard they’ve been working for their company to not pay them. I swear, what’s up with companies these days? >< They've lost their integrity…just like K-pop fans. I hope hope hope that they don't disband. They're too much of an awesome group to be split up by the neglectfulness of higher-ups. Block B fight on~

    • I know what you mean. It seems like this is becoming so common these days… people in charge stealing and refusing to pay the ones that got them that money in the first place!
      It feels so sad. Block B works so hard, and now it kind of seems like that last scandal they had was because of their company, (how the money comment was probably nothing more than a little complaint against their company). I remember how angry I was at the way their company handled that scandal back then, and now I can’t believe that they were part of the cause of it! Ugh >.<

      I really hope they win this case and are able to stay together in a better company that makes them even more successful!

  2. Pingback: This Just In: Block B’s Former Agency Found Dead! | Dramas Whoo!

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