Megan Lee has filed a lawsuit requesting a nullification of her contract against her label Soul Shop Entertainment.

Megan Lee's side said, "The singer was burdened because the label used their higher position to express unfair control on most clauses such as the penalty fee on breaking the contract. Also, she had overseas schedules agreed on by the label, but they signed a contract with the musical 'All Shook Up' without her consent even though they knew this. When signing the musical contract, they used Megan Lee's seal that was provided to create a bank account for her without her permission."

It's also been reported that Gilgun, also under the same label, had also filed a lawsuit. They explained, "While Gilgun was a part of the label for the past 1 year and 4 months, she had no single song or schedule. When the label found out she wanted to nullify her contract, the label sent a certification of contents telling her to leave after paying 2 times the contract fee. We have not replied to that yet."

SEE ALSO: Producers of musical 'All Shook Up' considering legal action against Megan Lee

Soul Shop Entertainment responded through an official statement and said,

1. The contract's length, as specified in the contract, was signed to be 5 years from her debut date. Compared to the 7 years marked by the Fair Trade Commission, this is shorter.

2. Excluding her song and album sales, all of her profits after the expenses are taken out, the [label and Megan Lee] split the profits 50% to 50%, and we would like to state that this is not at all unfair to the rookie Megan Lee even when compared to other artists.

3. The label getting the monopolistic rights to management is not different from the standard contract specified by the Fair Trade Commission.

4. Megan Lee's mother Lee Hee Jung did not notify the label and emailed the musical company King and I Company on November 21, 2014, by herself saying that [Megan] will not be attending practice or the performance. This was 7 days before the performance.

The core of this situation is as below.

On May 11, 2014, an American entertainment agency asked Megan Lee to audition, and the label sent Megan Lee's audition video to the USA, but until 4 months later on September 2014, the label received nothing about the audition.

Soul Shop received a request [for Megan] to audition for the musical 'All Shook Up', and she auditioned publicly on September 1, 2014, and signed the contract on appearing in the musical on September 12, 2014.

Afterwards, on October 21, 2014, Soul Shop Entertainment was told from the American agency that she will be participating in the final audition for a USA drama without conferring the label.

After, Megan Lee sent a one-sided notification to the label on November 16, 2014, went to the United States, and was accepted in the final audition, which conflicted with her musical schedule. On November 19, 2014, Megan Lee came back to Korea, did not notify the label, and continued her participation in the musical practice.

 During this time, Megan's mother didn't tell our company, but instead, the musical production company through a one-sided email telling them that she will not be attending practice, the performance, and of the lawsuit. Because of this, the musical producers, the musical participants, and our label found ourselves in a helpless situation that we could not respond to.

As a label in the public entertainment business, we are very sorry to relay another bad news. The label will do our best in the following lawsuit.

Once again, Soul Shop Entertainment apologizes for worrying everyone.