Jul 11, 2024 2 min read

⚖️ One Liners: Legal round-up including Spotify, Red Hot Chilli Peppers, Kakao and ADOR

Spotify Car Thing legal action dropped; former Chilli Pepper Klinghoffer facing wrongful death lawsuit; Kakao share manipulation drama + ADOR label boss quizzed by police over HYBE breach of trust allegations

⚖️ One Liners: Legal round-up including Spotify, Red Hot Chilli Peppers, Kakao and ADOR
The class action lawsuit brought against Spotify over its discontinued Car Thing device has been voluntarily dismissed without prejudice. The dismissal follows Spotify’s decision in late May to offer refunds to customers who purchased the device directly from the company, a reversal of its initial stance when announcing the product’s decommissioning later this year. However, the refund policy excludes third-party purchases. A Spotify spokesperson had previously stated: “We've begun issuing refunds to eligible customers who purchased Car Thing directly from Spotify”. 
Former Red Hot Chilli Peppers guitarist Josh Klinghoffer is facing a wrongful death lawsuit over an alleged fatal collision with pedestrian Israel Sanchez on 18 Mar in Alhambra, California. Filed by Sanchez’s daughter Ashley, the suit claims Klinghoffer negligently struck Sanchez in a marked crosswalk. In a statement Ashley Sanchez said that her father’s “life was taken by a careless act of a person who didn’t bother to look where he was driving”. The lawsuit alleges Klinghoffer was using a cellphone while driving. Alhambra police confirmed the case remains active but declined further comment. Klinghoffer, currently touring with Pearl Jam, has not responded to the allegations.
Kakao Corp founder Kim Beom-su faced prosecutors in Seoul on Tuesday over alleged stock manipulation during the company’s 2023 acquisition of SM Entertainment. Investigators allege that Kakao artificially drove SM’s share price above 120,000 won through 553 purchases totalling 240 billion won, aiming to outmanoeuvre rival bidder HYBE. The probe follows Kakao’s successful takeover, which resulted in a 39.87% stake in SM, and has already led to indictments of Kakao’s Chief Investment Officer and the company itself on related charges.
ADOR label boss Min Hee-jin was questioned by police on Tuesday in relation to breach of trust allegations filed by parent company HYBE. Min, who leads the label behind K-pop group NewJeans, denied the charges, telling reporters: “It couldn't have been breach of trust. It just seems like comedy to me. So I told them everything truthfully”. HYBE, which owns 80% of ADOR, had accused Min of attempting to seize control of the label. In May, Min retained her CEO position following a court injunction and shareholders meeting, despite HYBE’s efforts to dismiss her.
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