EXO-CBX hits SM Entertainment with lawsuit over unfair profit distribution: News: KpopStarz

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 follows ongoing disputes regarding contractual obligations and profit distribution between the company and the artists.

In a quick response, EXO-CBX released an official statement, expressing their disappointment and outlining their plan to counter 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 response was a lawsuit.

On June 12, they filed a lawsuit against EXO-CBX. At the press conference on June 10, we denounced the unfair actions of SM, which demanded 10% of sales without fulfilling its promise of 5.5% distribution fees.

We then asked again what SM’s position was regarding our statement. We also offered to pay a user fee for SM’s assets in exchange for 10% of 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.

If SM takes legal action first, we will act by disclosing everything, including last year’s negotiation process.

In addition, we will also take legal action against SM to claim the settlement amount (profit distribution). Through this procedure, we will assert our legitimate rights through the settlement data as stipulated by the exclusive contract. We will also reveal that SM’s settlement system is flawed.

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

1. A word to our fans

We sincerely apologize to our fans, who deserve nothing but happiness, for causing disappointment due to the same issue as last year. We will try to minimize the number of reports and resolve the situation.

We also promise to stay Chen, Baekhyun and Xiumin, who will forever hold special memories with you. Thank you for reading the lengthy statement. We apologize again for making you feel more than you should about this.”

READ MORE: EXO Baekhyun Praised For His ‘Duality’ For New Pictorial Film Amid Legal Battle With SM: ‘Serving Both Looks And Prosecution Documents’

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

Comments on popular forums reveal a range of feelings.

• “I feel like because they didn’t get the response they expected from the emergency press conference, they are now saying they will downplay the statements. Before, they were saying the data from settlement contained private information about other members and made a big deal about…what is it now…so disappointed.”
• “Why is there so much noise with EXO…I feel bad for the other members. Almost half of the members are just making trouble.”
• “Is this really a statement released by the agency? It looks like someone’s personal diary entry.”
• “They’re really giving it their all here. Do you expect to get support after putting the fans and other members through this? What should I do now, since I’ve only liked the guys for 11 years.”
• “You haven’t paid all this time? Just pay it. And you made a big deal at a press conference. What else could SM do but sue? Negotiations are out the window , good luck with the trial.”
• “They really need to withdraw their names at this point.”

The legal standoff between SM Entertainment and EXO-CBX raises important questions about artist management and contractual fairness in the K-pop industry.

ALSO READ: SM Entertainment Slams EXO-CBX With Lawsuits – Here’s Everything We Know So Far

KpopStarz owns this item.

Written by Cassidy Jones.