>>88497207A rigger was subcontracted by Cover to rig a model, and when they tried to submit their finished work Cover wanted like two hundred and thirty revisions. Given the relatively middling quality of rigging in Hololive and Holostars, that's not super surprising. They got in trouble because they didn't pay for the extra work which by law in Japan they apparently have to. Cover had a press release where they said that it was an accident and the payment slipped between the cracks as they were expanding, but they since paid in full and ate the fine they got from government as well as hired on more accounting staff to make sure it doesn't happen again. I suppose it's up to you whether or not you believe that.
The reason why it's notable news in Japan I believe because is either due to it being one of the first times the law is being brought up in relation something people know and give a shit about, or because the law is changing soon so it may be the last time it's brought up in this sort of context. But I'm not sure on any of that.