SM Entertainment has filed a lawsuit against EXO’s Chen, Baekhyun, and Xiumin—over contract disputes concerning album and music royalties. The group, known collectively as CBX, has responded by vowing to fight back, making a courtroom showdown inevitable.
On June 13th, SM officially filed their lawsuit, stating, “We will respond according to the law and principles.” In response, CBX stated, “SM did not respond to our negotiation proposal and instead immediately resorted to legal action. Since SM initiated the lawsuit, we will disclose all negotiation processes from last year and actively participate in the legal proceedings. We will also file a lawsuit demanding proper accounting from SM to claim our rightful earnings. This legal process will reveal the flaws in SM’s accounting system.”
Last year, CBX faced conflicts with SM over their exclusive contracts. However, they reached an agreement that allowed them to carry out individual activities separately, and this January, the trio signed with Baekhyun’s independent label INB100 for solo projects. On April 13th, they reunited with EXO members, excluding those in military service, for a fan meeting celebrating EXO’s 12th anniversary.
However, the conflict with SM resurfaced. CBX claimed that SM had promised a 5.5% commission rate through distributor Kakao but instead demanded 10% of their individual corporate earnings.
SM countered by accusing CBX of enjoying the benefits of being EXO members while neglecting their obligations. SM stated, “After signing mutual agreements, CBX has independently signed contracts for music distribution and other activities through their personal corporations. The 10% commission from individual corporate earnings is a standard enforced by the court during previous contract disputes with EXO’s Chinese members. This rate was mutually discussed and agreed upon during negotiations with CBX,” signaling the beginning of a legal clash.
CBX addressed their fans, saying, “To our fans who have always given us love and support and only deserve happiness, we deeply apologize for causing anxiety and disappointment with the recurrence of last year’s issues. We will minimize public statements and strive to resolve this situation swiftly. We promise to remain as Chen, Baekhyun, and Xiumin, cherishing the precious memories we’ve created with you.”
Despite hopes for a resolution, the ongoing conflict is expected to divide EXO-Ls and CBX’s fans, causing heartache for those longing for EXO’s complete group activities. Additionally, concerns are rising for leader Suho, who is currently receiving praise for his role in the drama Missing Crown Prince and is scheduled for interviews, potentially facing backlash due to the controversy.
>>EXO-CBX Holds Press Conference to Expose SM Entertainment’s Unfair Practices
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