EXO-CBX Strikes SM Entertainment by Filing a Lawsuit for Unfair Profit Distribution

SM Entertainment has officially filed a lawsuit against EXO-CBX members Chen, Baekhyun, and Xiumin. The lawsuit demands that the three artists adhere to the terms of their existing agreement with the entertainment giant.

This legal action comes in the wake of ongoing disputes regarding contractual obligations and profit distribution between the company and the artists.

In a swift response, EXO-CBX released an official statement, expressing their disappointment and outlining their plan to counter-sue SM Entertainment.

The trio’s statement reads:

“EXO-CBX would like to inform you of our position regarding the lawsuit filed by SM Entertainment.

1. SM’s answer was a lawsuit.

On June 12, they filed a lawsuit against EXO-CBX. At the press conference on June 10, we stated SM’s unfair actions, as it demanded 10% of sales while not keeping its promise of the 5.5% distribution fee.

We then asked again what SM’s position was regarding our statement. Also, we proposed paying usage fees for SM’s assets in exchange for 10% sales, but they ignored our proposal.

As a result, SM did not respond to our negotiations and immediately took legal action.

1. We will do our best.

With SM filing a lawsuit first, we will take action by disclosing everything, including last year’s negotiation process.

Also, we will also file a lawsuit against SM to claim the settlement amount (profit distribution). Through the procedure, we will claim our legitimate rights through the settlement data as stipulated by the exclusive contract. We will also reveal that SM’s settlement system is wrong.

By filing a complaint with the FTC, we will also receive fair judgment regarding the unfair treatment of the exclusive contract.

1. A word to our fans

We truly apologize to our fans, who deserve nothing but happiness, for causing disappointment due to the same problem as last year. We will try to minimize the amount of statements and resolve the situation.

We also promise to remain as Chen, Baekhyun, and Xiumin, who will forever make special memories with you. Thank you for reading the long statement. We apologize once again for making you feel more than you should regarding this matter.”

The ongoing legal battle has sparked mixed reactions from netizens, many of whom are growing weary of the public disputes.

Comments on popular forums reveal a spectrum of sentiments.

• “I feel like because they didn’t receive the response they expected from the emergency press conference, now they’re saying they will minimize statements. Before, they said that settlement data had other member’s private information and made a fuss about…what is all this now…so disappointed.”
• “Why is there so much noise with EXO…I feel bad for the other members. Almost more than half the members are just making problems.”
• “Is this really a statement released by the agency? It looks like someone’s personal diary entry.”
• “They’re really going all out here. You expect to receive support after making the fans and other members go through this? What should I do now as someone who liked only guys for 11 years.”
• “You didn’t pay all this time? Just pay it. And you guys made a fuss with a press conference. What else could SM do besides file a lawsuit? Negotiations are out the window, good luck with the lawsuit.”
• “They really need to take away their names now at this point.”

The legal tug-of-war between SM Entertainment and EXO-CBX raises significant questions about artist management and contractual fairness in the K-pop industry.