Today the CEO of Star Road Entertainment (home to JBJ95 and Rena, and former home to D.Holic) is facing a criminal lawsuit for fraud, negligence, and embezzlement.
Reportedly, an event production agency “A” filed a lawsuit against the CEO for failing to pay approximately ₩70 million KRW (about $64,000 USD) in production costs for the organization of JBJ95’s online Japanese fan meeting.
The meeting took place on December 20 and December 27. Star Road Entertainment was supposed to pay the production costs by January 13 but did not. The company accuses the CEO of using the money for his personal life.
It is true that we have been sued by the company ‘A’ for failure to pay production costs. We were unable to earn sufficient revenues from the fan meetings, and the agency is struggling financially due to COVID19. However, the accusation that the agency’s CEO funneled revenues from this event for personal use is false.
—A Star Road Entertainment Representative
Star Road Entertainment concluded by stated that they will attempt to pay back the company what they owe.