YG Entertainment Sued
YG Entertainment CEO Yang Hyun Suk Sued by Stockholders and Civic Groups. According to Reports YG Entertainment will face a lawsuit by civic groups “for lack of morals” as well as stakeholders for plummeting stacks.
The stock prices for the company have plummeted more than 20% since the Seungri scandal. Also, major foreign investors withdraw their investment in the company which incurred a huge loss for remaining investors.
According toallkpop Foreign investor, LMVH pulled their 50.3 billion investment in YG as well as other individual investors with investments totaling 55.3 billion won. To make matters worse, stockholders are demanding compensation from YG on the stock debate bulletin board for the significant losses they incurred due to plummeting stocks.
Making things worts for YG Entertainment civic group ‘Measures for the People’s Livelihood’ announced that they have filed a complaint with the Seoul Central District Prosecutor’s office in regards to Seungri hidden camera scandal. They’re also filing a complaint against YG CEO Yang Hyun Suk (Seungri’s agency) and Make Us Entertainment CEO Lee Dong Hyung (Jung Joon Young’s agency) for neglect of supervision.
A Measures for the People’s Livelihood representative from the committee said,
“As a public figure who exerts great influence in society, they shouldn’t be protected when they lack ethics and morality. It will be a huge social impact to pass on this case. CEOs of small companies are only seeking profits, and they have been consistent with the trick and responsibility of “declining the contract” in the event of inappropriate remarks and deviant acts by celebrities. We need to make it clear that the company is also jointly responsible.” “In particular, the higher the popularity of celebrities and the greater their influence in society, the proportion of profits and responsibilities is proportional,” he said. “We need a strict standard for entertainers and their agencies that have forgotten about this fact.”