Sleepy's exclusive contract lawsuit overturned in appeal, TS Entertainment states court recognized rapper's false claims

The legal battle between rapper Sleepy and his former agency, TS Entertainment, has entered a new phase after six years.

On September 4, TS Entertainment’s legal representative, Law Firm AK, stated, "We would like to accurately deliver the facts and the court’s judgment regarding the recent appellate ruling in the lawsuit filed by Sleepy against our client (TS Entertainment)."

Regarding the settlement payment dispute, TS Entertainment said, "Sleepy has repeatedly claimed through the media that he 'did not receive settlement payments for 10 years' and that he 'suffered from utility shutoffs due to financial hardship.' However, in this ruling, the court clearly determined that settlements were properly carried out up until February 2019, and there were no unpaid settlement amounts. In other words, the claims that had been circulated for years were proven to be false or exaggerated."

TS Entertainment also revealed that the court acknowledged Sleepy’s unauthorized earnings from social media advertisements. They explained, "The court recognized that Sleepy conducted advertising deals without the agency’s consent and gained financial benefits worth tens of millions of KRW. This is a serious illegal act that goes beyond a simple contract dispute and could involve criminal liability." 

However, Law Firm AK added, "The court ruled that our client must pay the settlement for the first quarter of 2019, which was withheld after Sleepy sent a notice of contract termination, as well as the unpaid portion of the monthly payments that were made in the form of a salary after the contract ended." They continued, "Our client will review the wording of the contract regarding the unpaid monthly payments that were made in the form of a salary and decide whether to file an appeal."

The legal dispute between Sleepy and TS Entertainment began in April 2019, when Sleepy filed a civil lawsuit seeking confirmation of the invalidity of his exclusive contract with the agency. In December of that year, TS Entertainment countered by filing a lawsuit demanding 280 million KRW (~200,658 USD), claiming that "Sleepy concealed part of his broadcast appearance fees and advertising income from social media promotions from the agency." However, TS lost both in the first and second trials, and the Supreme Court dismissed their appeal last September, finalizing the case in Sleepy’s favor.

The ruling reported today concerns the appellate decision in Sleepy’s civil lawsuit against TS Entertainment. Analysts suggest that the additional evidence TS submitted regarding Sleepy’s unauthorized acquisition of social media ad revenue played a decisive role in overturning the first trial’s ruling.

As for the appellate ruling, Ilgan Sports attempted to reach Sleepy and his legal representatives for comment but has not yet made contact.