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Tuesday, September 1, 2009

SM Entertainment can’t file all the paperwork

Defying a court order? That doesn’t sound good.

The first court hearing involving SM Entertainment and DBSK’s Yoo-chun, Jae-joong, and Jun-su was conducted on August 21st, and no conclusive ruling has been made. SM Entertainment was originally given a 20 day period to submit all relevant documentary evidence, such as receipts, accounts books, etc., to the Courts for consideration, but the 20 days expired on August 26th and SM has yet to submit all the requested evidence.

As the Courts have stated, those documents are necessary for an accurate ruling, which they plan on making on September 11th, since this whole legal debacle is over the unfair distribution of profits. Basically, the Courts seems to want an audit of SM Entertainment as that would be the most effective way to determine whether DBSK or SM’s monetary claims of profit distribution were true.

SM has stated, however, that submitting all the requested documents in the amount of time given is too complicated and broad of a task, and that if the Courts were to specify the sections they want, they would be happy to comply. Seeing as how the Courts haven’t given an “answer,” SM hasn’t submitted the “everything” that the Courts want yet. Relevant evidence will continue to be provided to the Courts until they make their final decision.

I can understand SM’s hesitation. Although SM has denied this, by revealing their account books and transactions, SM risks revealing their company secrets to success, which of course they would not want to do, possibly in the form of what kind of transactions they made with certain types of industry peoples to get DBSK to where they are now.

Even if everything turned out to be all legit (which I doubt), there is potential that if SM unveiled all their expenses and such on DBSK, they might have to completely restructure their business model over complications and to fend off accusations of this and that from Cassies that will not rest until their boys don’t look so exhausted (”exploited”) all the time.

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