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A cosmetics brand named 'WG by WONDERgirls' has been ordered by the court to pay back the investments made by their investors.
On January 4th, the 41st Seoul Central District Court accepted a lawsuit made by three investors against the cosmetics company claiming that they had not received their promised dividends. The court ruled, "The company must pay each of the investors 120,000 Won (~$104,500 USD)."
They continued, "The company did not have the means to provide the investors with the promised amount despite signing the investment contracts and receiving the investments. They lied and tricked the investors into thinking that they did, which is why we are fining them to pay back 120,000 Won to each investor."
The company launched 'WG by WONDERgirls' using the girls as their brand marketing and endorsement models in December of 2009. Through the course of February and March in 2010, the company received a total of 360,000 Won (~$313,500) USD in investments for the product line.
Unfortunately, the release of the 'WG by WONDERgirls' line kept getting delayed by reasons of design errors, and the cosmetics that were released reported weak sales, causing the company to fail to live up to the terms of the contracts.
NOTE: This was copied from allkpop.com. The article was written by Vitalsign.
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