DSP Media lost the lawsuit against them by KARA's previous endorsed clothing company 'ASK' and its parent company Real Company, which previously sought compensation for damages following negative press surrounding KARA's lawsuit against DSP Media in 2011.
To recap the situation a few years back, the clothing company claimed that because of the controversy surrounding KARA at the time, it had suffered losses. In addition, although KARA was scheduled to have several rounds of photoshoots with the clothing company, they were only able to partially carry out their activities before three of the members filed against DSP Media.
The Seoul High Court sided in favor of Real Company, ruling today (May 21, 2014), "DSP Media should pay Real Company 50 million KRW (~48,700 USD)."
The court stated, "Prior to KARA's dispute, they possessed a bright and friendly image and following the controversy and the negative press, their image substantially dropped... The dispute between KARA and their agency's over their contract was a breach of the endorsement contract for violation of the maintenance of their integrity as a default on one's obligation."
However, the court rejected the claims by the clothing company that said their company's image as a whole also deteriorated.
Regarding the ruling, DSP Media rep revealed that they are reviewing the decision and are looking into the next steps to take.
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