A lawsuit filed on behalf of the South Korean boy band Block B against record label Stardom Entertainment, claiming they are owed thousands of dollars, was dismissed in Seoul Central Court on Friday.
In the lawsuit, which Block B filed last year, the band members of demanded to be released from their contract with the record label that created them.
"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," the suit charged, according to the website allkpop.
"However, the agency has not paid us for nearly one year."
Although the court concluded that it was possible the record label owed Block B money, it was determined there was not sufficient proof that Stardom Entertainment had shirked on their obligations to the band.
"From the evidence provided so far, it is difficult to claim that the label purposely did not pay Block B," read the official court statement.
"It is also difficult to say that the label did not provide proper facilities such as studios and dorms, and it is also difficult to say that they did not provide education and guidance. From written records, it cannot be said that Stardom Entertainment violated their management obligations."
The band claims they haven't been paid since March of 2011, a charge Stardom Entertainment executives vehemently denied in an official statement back in January.
"We have made complete payments to every members of Block B on time," the statement read, according to the publication Soompi.
"Initially, the agreement was to pay the members on the 25th of every month. However, between April and October of 2011, there had been no profits made by this group. Therefore, for the first six months of Block B's debut, we could not pay their salaries."
Stardom Entertainment claims the band and their parents had agreed to receive payments once every three months.
Additionally, the label execs admitted that Block B's former manager known simply as "Mr. Lee" had stolen $66,000 from the band's parents, but denied having any knowledge of the transactions.
"It is true that Mr. Lee, who was hired briefly as the manager for the group, received bribes from the parents," the Stardom statement alleges.
"Mr. Lee, however, met with the parents without our knowledge and has deceived both the agency and the parents. Currently, we do not know of his whereabouts. We only found out afterward."
The label claims to have not publicized the fleecing of the band member's parents to avoid bad publicity for Block B.
"At the time, the parents and the agency decided not to publicize this incident because we feared it would affect the group negatively," the statement read.
"We have contacted the proper authorities, and we hope that Mr. Lee will be brought to justice soon.
Friday's Seoul Central Court ruling appears to have denied Block B the right to terminate their contract with Stardom Entertainment.
"The label has promised to pay the members the part that they have not been paid," the court ruling stated.
"There is a big probability that the unpaid fees will be paid. It is difficult to say that the exclusive contract has been nullified because of a violation of management obligations.
kpopstarz
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