Legal Mindset discussed a leaked separation contract from VShojo this week. The contract was sent to attorney Andrew Esquire this week by an employee terminated from VShojo.
An Agency That Never Lived Up to Its Claims
If it wasn’t obvious before, VShojo was never the innovative “talent first” agency they originally claimed to be. The company collapsed after VTuber Ironmouse claimed the talent agency owed $500,000 in missing charity donations. A mass talent exodus followed with Kson, Kuro Kurenai, and others publicly quitting within days. By July 24, the company announced it was shutting down.
This document isn’t a typical talent-for-services agreement because companies don’t view talent as employees. Still, Esquire mentioned that some clauses mirror what talents might face. Especially since many talents have accused VShojo of unpaid wages, workplace misconduct, and there’s confusion on whether the NDAs they signed are still in effect.
The Predatory Fine Print
One clause forces the departing employee to shoulder VShojo’s attorneys’ fees. Something as simple as exposing wrongdoing or mismanagement on social media can be sued for damages AND be liable to pay the cost of VShojo’s legal team. Another demands a sweeping declaration. It wants employees to state they’ve never raised allegations about sex discrimination, harassment, unpaid wages or anything remotely problematic.
Esquire emphasized that it’s a “subtle intimidation” tactic. While this waiver can’t legally bar someone from pursuing claims, its intent is to scare anyone into silence.
Who’s Being Silenced and Why That Sparks Alarm
Esquire warned clauses like the non-disparagement provision with financial penalties could easily be forced onto ex-talent such as Ironmouse. Even those who stayed quiet are likely feeling the pressure. The contract is engineered to make people think they have no path forward. It’s subtly threatening, meant to prevent whistleblowing.
How Forum Shopping Tilts the Game
One detail Esquire pointed out that deserves attention is forum shopping. It’s when a company’s contract selects a legal jurisdiction where the court system favors the company. Worse, the company and its employees don’t need to be based in the same location. If a company designates a state with laws that lean pro-employer, every fight happens on the employer’s chosen battlefield.
VShojo’s headquarters are located in California, they’re incorporated in Delaware, yet Washington state law is used to govern disputes and litigation. This matters because it reinforces the intimidation and predatory clauses. It’s not just “you might get sued.” It’s “you’ll have to fight us where the law bends in our favor.” It weaponizes geography and jurisdiction so that even the act of seeking justice feels impossible.
Why You Should Care About This
This leaked contract underscores a larger issue of how companies weaponize legalese to suppress dissent. It’s not just VShojo, you’ll see this tactic used elsewhere. Yet power isn’t absolute. No clause holds up when you have truth, legal support, and resolve. Talking to an attorney about your contract is crucial to protect yourself.
Know your rights. Speak with legal counsel. Remember that while silence is the goal, it’s never the only option.
