June 14 – CBX, EXO members Chen, Baekhyun, and Xiumin, announced they would file a settlement claim lawsuit against SM Entertainment (SM), following a lawsuit SM filed against them.
“SM filed a lawsuit against us on the 12th,” stated INB100, CBX’s agency, in an official release on the June 14. “As SM initiated the lawsuit, we will disclose everything, including last year’s negotiation process, and actively engage in the legal proceedings.”
INB100 also announced plans to file a lawsuit concerning settlement issues, questioning the accuracy and fairness of SM’s accounting and settlement data. The agency claims this litigation will reveal flaws in SM’s settlement system. Additionally, CBX intends to file a complaint with the Fair Trade Commission, citing unfair practices in SM’s exclusive contracts.
“To our fans who always show love and support, we apologize for causing anxiety and disappointment due to these recurring issues. We will strive to resolve the situation swiftly,” INB100’s statement read.
During a press conference on the June 10, INB100 alleged that SM failed to honor a 5.5% Kakao music distribution fee agreed upon last year. They also claimed SM unfairly demanded 10% of sales from CBX’s individual activities and withheld settlement data.
Official Statement from INB100:
CBX’s Response to SM’s Litigation and a Message to Our Fans
1. SM’s Response: A Lawsuit
On the June 12, SM filed a lawsuit against us. At a press conference on the 10th, we highlighted SM’s failure to honor the 5.5% distribution fee and their demand for 10% of our sales. We proposed an alternative agreement to pay SM from assets like music sources and usage fees, but SM did not respond and instead resorted to legal action.
2. Our Commitment
As SM initiated the lawsuit, we will disclose the full details of last year’s negotiation process and actively engage in the legal proceedings. We will file a settlement claim lawsuit to receive the proper accounting and settlement data as mandated by law and our exclusive contract. We aim to demonstrate the flaws in SM’s settlement system and seek fair judgment through the Fair Trade Commission.
3. Message to the Fans
“To our beloved fans who have always shown us love and support, we sincerely apologize for causing anxiety and disappointment with the recurring issues from last year.
We promise to minimize public statements and resolve this situation as quickly as possible.
We are committed to remaining Chen, Baekhyun, and Xiumin, cherishing the precious memories we’ve created together with you.
Thank you for taking the time to read this statement, and we apologize for any distress this situation has caused.”
Conclusion
The ongoing legal battle between CBX and SM Entertainment highlights significant issues regarding contract fairness and settlement transparency in the entertainment industry. Fans and industry watchers alike will be keenly following the developments of this case.
Article source, images courtesy of of INB100
