According to reports on February 13, Seoul's central district court has ordered girl group's LOOΠΔ's label Block Berry Creative as well as the label's parent company Polaris Entertainment to pay back a foreign investor company known as 'Donuts' for violation of the investment contract.
Previously, foreign company 'Donuts' filed a lawsuit against Block Berry Creative by claiming that the company invested a total of 3.5 billion KRW (~3 million USD) in the production of LOOΠΔ. However, Block Berry Creative allegedly violated the investment contract with 'Donuts' due to the fact that LOOΠΔ failed to participate in 'Donuts's related businesses. In addition, 'Donuts' claimed that Block Berry Creative failed to provide records of where the investment funds were used. Regarding this matter, Seoul's central district court has allegedly favored 'Donuts's arguments, ordering Block Berry Creative to pay the investment funds back in full.
Furthermore, media reports stated that 'Donuts' plans on claiming the rights to LOOΠΔ's future activities in order to prevent Block Berry Creative from transferring the girl group to a different company. Previously, Block Berry Creative as well as parent company Polaris Entertainment was ordered to pay 'Donuts' back an investment deposit amount of 360 million KRW (~ 300,000 USD) in a separate legal trial.
The outcome of the above court decision is also expected to impact LOOΠΔ's ongoing promotional activities.