The court has rejected an appeal brought against global IT company Donuts by LOONA's holding company Polaris Entertainment.
Blockberry Creative's second-largest investor, Donuts, had recently allocated 3.5 billion won (about $2,964,500) in Polaris Entertainment, but the firm failed to uphold the investment deal.
During the first hearing, the court decided that Polaris Entertainment would refund the money invested, and the media industry appealed. The dispute was passed over to the High Court in February, but the appeal was rejected because no party was present at the trial. (via Soompi)
The Seoul High Court previously affirmed the decision reached during the first hearing concerning the appeal case brought by Blockberry Creative and its parent company Polaris Entertainment, as per the court's statement on September 14.
They clarified, "LOONA's representative failed to show up on the court proceedings for the appeal hearing more than twice, so now we have decided to withdraw the appeal." The media firm would return 3.5 billion won (about $2,964,500) to its investor Donuts.
Last year, Polaris Entertainment was involved in a lawsuit with Donuts about a lease fee not brought back. In 2017, the company joined forces with Donuts to launch their LOONA girl band venture, and Polaris Entertainment got 400 million won (about $338,500) from Donuts as a downpayment to rent a space.
Correspondingly, Donuts filed a civil suit after Polaris Entertainment retrieved just 40 million won (about $33,850), and did not return the remainder 360 million won.
Meanwhile, the Seoul Central district court found in October 2019 that Polaris Entertainment, as well as its CEO, Lee Jong Myung, would reimburse 360 million won (about $304,700) for the rental deposit to Donuts. The extra expense payments accrued as a result of delays, too.
Donuts must assert rights over LOONA in compliance with the investment deal, to avoid Blockberry from moving the group to another company. A representative from Blockberry Creative said on September 14, "The firm is doing its utmost for LOONA's return and activities, which is currently in progress. We are going ahead without any problems."
