Actor Lee Jung Jae and software company Artist United have filed a lawsuit against drama production company RaemongRaein, accusing them of fraud and making false accusations. The lawsuit follows a legal battle that began when RaemongRaein initially sued Lee Jung Jae, alleging that he had committed fraud in connection with the acquisition of their company’s stocks.
Lee Jung Jae and his software company are countering allegations with their own lawsuit against the production company
According to Kim Dong Rae, CEO of RaemongRaein, Lee Jung Jae had offered several opportunities for the company’s growth in exchange for acquiring its stocks. These opportunities reportedly included potential mergers with major entertainment labels, leveraging Lee Jung Jae’s extensive network, and securing investments from a prominent American talent agency.
“Squid Game” Star Lee Jung Jae Facing Shocking Fraud Accusations via @Koreaboo https://t.co/3vgDWEBvVN
— Chow Hoa meng (@ChowHoa) August 11, 2024
However, Artist United, where he is the largest shareholder, presented a different narrative. The company stated that they had legally agreed to an investment contract during a time when RaemongRaein was struggling financially. Artist United claims they fulfilled their obligations by paying for the issuance of new stocks. Despite this, Kim Dong Rae allegedly refused to transfer the company’s management rights as initially agreed upon.
Tensions escalated in June when Artist United requested a shareholder’s meeting. Kim Dong Rae reportedly persuaded 12 minority shareholders to take legal action against Artist United, accusing them of acquiring RaemongRaein’s shares through deceptive means.
In response to the ongoing lawsuit, the actor’s side expressed their frustration, stating, “It is absurd that Kim Dong Rae, who failed to fulfil his end of the contract even after the investors diligently fulfilled theirs, has sued our company.”
As both parties prepare for a legal showdown, the entertainment industry is closely watching how this high-stakes dispute will unfold. The outcome could significantly impact the future of both RaemongRaein and Artist United.