The agency of the girl group LOONA lost a 3.5 billion (~3 million USD) KRW investment lawsuit this month, which is expected to have a significant impact on the group's activities in the future.
According to a Star News investigation from this Wednesday, LOONA's agency Blockberry Creative lost a lawsuit recently filed by Donuts, the company’s second-largest shareholder, and is to return the 3.5 billion KRW (~3 million USD) invested by Donuts.
According to the Seoul Central District Court's civil case ruling, Donuts invested 3.5 billion KRW in Polaris, the parent company of Blockberry Creative, but claimed that the agreed-upon contract, which included LOONA’s appearances in relation with Donuts' business, was not fulfilled. As a result, the court ruled that Polaris should return the entire investment as it violated the terms of the investment.
Donuts invested ~5.5 billion KRW (~4.6 million USD) in Blockberry Creative and Polaris, including the 3.5 billion KRW in the aforementioned investment, and reportedly suffered losses due to the breach of the contract with Blockberry Creative and Polaris.
Donuts does not know how the investment was spent, and is requesting permission to browse and duplicate accounting logs and other documents in order to learn the details. Under investment agreements, Donuts plans to exercise claims regarding LOONA so as to prevent the group's agency affiliation from being changed or transferred.
Donuts had previously filed a separate lawsuit against Polaris, seeking 360 million KRW in deposits for space leases (~300,000 USD).
It seems that the loss of the 3.5 billion KRW lawsuit could affect LOONA's future activities, as Blockberry Creative and Polaris must jointly return large sum of investment funds following the loss.
Meanwhile, LOONA, gaining huge popularity overseas, recently released a mini-album [#], and made a comeback with the title track "So What." The group has garnered great attention for being the first group that Lee Soo-man has produced for outside SM entertainment.