Polaris Entertainment is suing Clara for breach of contract (working under KoreanaClara when her contract is still active), while Clara is suing them for sexual harassment.
She stated that this was the main reason why she'd decided to file a case to terminate her contract, reports KpopStarz.
However, the agency denied any of this especially the sexual harassment, saying that this is just a lie that Clara made up so she can get out of her contract.
Now, with the agency saying that she's lying and that she admitted to them she's just making up stories to build a case, Clara's camp won't let these allegations slide and came back with a statement which was relayed by her law firm, SW Law.
"Clara's exclusive company is KoreanaClara - an agency set up by Clara's parents. On the other hand, Polaris, is an agency that was given a fraction of rights by KoreanaClara.
"The rights give them the authorization to negotiate for Clara's casting in movies and CFs. Therefore, in that system, it can be safely stated that Polaris is not Clara's main agency.
"Additionally, KoreanaClara has already been set up at the time when the two agencies signed a contract of affiliation.
"With this said, we are making it clear that Clara did not signed an exclusive contract with Polaris and then decided to nullify it after she started doing well.
"Regarding Polaris' assertion that Clara came to them to apologize and confessed that she just invented the sexual harassment story to file a case, it is not true. The story was twisted and retold in favor of Polaris.
"Last September, Clara's father sent a letter to Polaris, notifying them of their wish to nullify Clara's contract due to the CEO's inappropriate words and actions towards Clara.
The agency's lawyer told her father, "First, you have to apologize for unjustly requesting for the contract to be voided without any penalty fee. You also have to say sorry for the threat of reporting the matter to the police. It is only then that we will agree on ending the contract, and how much penalty fee you should settle."
"And so, Clara decided to come to Polaris and see its CEO, to apologize just like what she was told to do by the lawyer, in order for her contract to be nullified. However, the agency recorded their conversation and gave it to the police.
"The next, they filed a criminal lawsuit against Clara, claiming that she demanded contract termination without having to pay any penalty fee and even threatened to report Polaris to the police."