EXO-CBX Countered Civil Lawsuit SM Entertainment Filed Against Them
After suing SM executives for fraud, EXO-CBX members also filed a countersuit against SM’s previous civil lawsuit
According to Newsis on June 27th, EXO-CBX members filed a countersuit against SM Entertainment at the Seoul Eastern District Court on the 25th. This is their response to the civil lawsuit filed by SM against the three members demanding the fulfillment of their contracts.
CBX said they filed the countersuit to obtain the rightful settlement money based on the settlement data during the 12-13 years of exclusive contracts with SM.
Together with their agency INB100, the three also filed a lawsuit against SM Entertainment’s co-CEOs Lee Sung-soo and Tak Young-joon at the Seoul Seongdong Police Station on the 25th on charges of fraud. CBX claimed, “During last year’s dispute, SM lied to us by promising to set the distribution fee for music and album sales at 5.5%”, adding “SM did not guarantee this, and even deceived the members to agree on a 10% sales generated from individual activities at the end of each quarter during the new exclusive contract period”.
Explaining why they sued SM, INB100 said, “SM unlawfully earned profits by taking 10% of the revenue from CBX members’ individual activities”.
The dispute between CBX and SM is still going on. Earlier on the 10th, CBX’s representatives held an emergency press conference and announced their stance. In response, SM pointed out that the essence of this case is the tempering from MC Mong and INB100’s CEO Cha Ga-won, adding, “The part in which we receive 10% of members’ individual sales is a standard that has been implemented according to court arbitration in the contract dispute between us and EXO’s Chinese members, and it has been applied as a reasonable standard with precedents”.
Later, CBX emphasized their position again, saying “SM should not distort the essence of the case and disclose the settlement data as the artists have the right to know”.
