The subunit counteracts with a legal complaint.
The UBJ
EXO-CBX, consisting of members Chen, Baekhyun, and Xiumin, is embroiled in a lawsuit with SM Entertainment.
The dispute arises from the terms and conditions of their contract, with SM Entertainment urging the members to adhere to the prior agreement.
In retaliation, EXO-CBX has initiated legal proceedings against SM. Below is their official stance on the matter.
“We wish to communicate our position regarding SM Entertainment’s lawsuit.
- SM’s response was litigation.
On June 12, they filed a lawsuit against us. We had highlighted SM’s unjust practices during the June 10 press conference, criticizing their demand for a 10% sales cut while reneging on a promised 5.5% distribution fee.
We further inquired about SM’s stance on our declaration. Meanwhile, we offered to pay for the utilization of SM’s assets in lieu of the 10% sales share, but to no avail.
Hence, without any negotiation efforts, SM opted for immediate legal action.
- We are committed to our defense.
SM took the first step of suing us, prompting us to unveil the entirety of last year’s negotiation process.
Additionally, we will lodge a lawsuit against SM for compensation (profit distribution). Through the court procedure, we plan to claim our rightful dues as per the terms of our exclusive contract. We will also expose the flaws in SM’s reconciliation process.
By lodging a complaint with the FTC, we aim to secure a just verdict on the exclusive contract’s inequitable clauses.
- To our beloved fans
Our apologies go out to our dear fans, who only deserve the best, for this letdown, echoing last year’s predicament. Our intent is to limit public statements and expedite the resolution.
We promise to continue providing cherished moments as Chen, Baekhyun, and Xiumin. We appreciate your patience in reading this lengthy release. Our regrets for burdening you with this issue once more.”
However, the persistence of these disputes has left netizens exasperated, longing for a swift settlement.
- “Seems like they’re minimizing public statements due to lack of expected support after their emergency press briefing. They previously objected to data sharing on account of privacy…and now all this. Deeply disheartening.”
- “Was payment not made previously? Truly nonsensical.”
- “Certainly, you owe an apology to the fans…”
- “Why all the drama around EXO…It’s pitiful for the other members. The issues seem to revolve around more than half of them.”
- “This statement feels like someone’s journal rather than an agency’s formal response. Disappointing.”
- “They’re pushing their limits. Do they really expect support after troubling the fans and their bandmates? I’ve been a fan of theirs for 11 years, what am I to do now?”
- “Refusing to settle your dues? A loud press conference raises questions. What else could SM do but sue? Since negotiations are moot, best of luck with the court case.”
- “It might be time for them to be stripped of their names.”
SM Entertainment Accuses EXO-CBX of Misusing EXO’s Brand, Pledges Legal Recourse
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Frequently Asked Questions
What is the contention between EXO-CBX and SM Entertainment?
The main issue lies in the profit distribution, where EXO-CBX accuses SM of demanding a 10% sales share without adhering to the promised 5.5% distribution fee.
Has EXO-CBX filed a lawsuit against SM Entertainment?
Yes, EXO-CBX has filed a lawsuit in response to legal action taken by SM Entertainment, seeking to claim their rightful profit distribution.
What are netizens’ reactions to this dispute?
Many netizens express frustration over the ongoing legal battles and wish for a quick resolution. There are concerns over the impact on fans and the group’s reputation.
What does EXO-CBX plan to reveal through the lawsuit?
EXO-CBX intends to disclose the details of the last year’s negotiation process and highlight the flaws in SM Entertainment’s settlement system.
What message does EXO-CBX have for their fans amidst this legal dispute?
EXO-CBX apologizes to their fans for the distress caused by the dispute and assures them that they will try to resolve the matter quickly and with minimal public statements.
