SM Entertainment has filed a lawsuit against three EXO members, namely Chen, Baekhyun, and Xiumin (EXO- CBX). Quoting from Allkpop on Thursday June 13, 2024, the entertainment agency filed a lawsuit with the Seoul Eastern District Court on June 12, 2024, demanding EXO-CBX fulfill the obligations outlined in their previously concluded contract.
"It is true that a lawsuit has been filed against CBX. This matter will be handled according to the law," said an SM Entertainment representative. Previously, Chen, Baekhyun, and Xiumin renewed their contracts with SM Entertainment in December 2022. However, in June the following year, the three EXO members applied for termination of their contracts on grounds of unfairness.
The legal dispute occurred for approximately one month, resulting in the three members reaching an agreement with SM Entertainment. It was agreed that the three would promote under SM Entertainment for EXO's group activities, while gaining freedom for their individual promotions under the new independent label. During the settlement contract period, 10% of all sales made by the new label will be paid to SM Entertainment.
After that, in January this year, Baekhyun founded his own agency, INB100. He registered himself, Chen, and Xiumin as artists under the label and managed their individual activities. Furthermore, on June 10, Chen, Baekhyun, and Xiumin held a press conference to claim unfairness of the 10% payment terms outlined in their settlement contract.
Furthermore, CBX accused SM Entertainment of not paying 5.5% of all revenues from album sales and streaming, another clause outlined in the settlement contract. Responding to demands from CBX, SM Entertainment denied that receiving 10% of all sales by independent labels was the standard set by the court during SM Entertainment's previous lawsuit against EXO members in China.
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