The legal drama between EXO-CBX and SM Entertainment is heating up with both parties filing lawsuits for contract non-compliance.
EXO-CBX and their agency INB100 lodged a complaint on June 25 with the Seongdong Police Station in Seoul, accusing SM Entertainment’s Chief A&R Officer Lee Sung Soo and Co-CEO Tak Young Jun of fraud under the Special Police Act.
Additionally, CBX filed a counterclaim against SM Entertainment at the Seoul Eastern District Court, seeking monetary compensation on the same day. This counterclaim is a response to the lawsuit filed by SM Entertainment against EXO-CBX, demanding fulfillment of their contractual obligations.
EXO-CBX has filed a counterclaim against SM Entertainment’s lawsuit demanding 10% of sales royalties, seeking a fair settlement based on actual sales data from the past 12 years of their exclusive contract.
This move comes in response to SM’s initial lawsuit filed with the Seoul Eastern District Court on June 13.
As claimed by CBX (Chen, Baekhyun, and Xiumin) representatives at a press conference, SM Entertainment allegedly broke a promise to limit Kakao’s commission to 5.5%, instead demanding a 10% cut of their individual earnings.
In response to the allegations, SM Entertainment initiated legal action, filing a lawsuit on June 13. On June 26, it was reported that Chen, Baekhyun, and Xiumin had filed a criminal complaint against SM Execs for fraud.
EXO is preparing for a winter comeback, but three members are in a dispute with their label, leaving fans wondering if the comeback plans will be affected.