On June 26th, CBX’s agency INB100 told OSEN, “On the 25th, EXO-CBX and our agency INB100 filed a complaint with Seongdong Police Station in Seoul against SM Entertainment’s Co-CEOs Lee Sung-soo and Tak Young-joon on charges on violating the Act on The Aggravated Punishment of Specific Economic Crimes (Fraud)”.
CBX’s agency stated that SM had promised to distribute the content to be planned, developed, and produced by the artists through a designated distributor with a distribution fee of 5.5%, but failed to keep their promise.
In addition, CBX’s side accused SM of stealing property gains by demanding 10% of sales generated from the members’ personal entertainment activities as royalties even though the did not keep their promise.
In June last year, CBX notified SM Entertainment of the termination of their exclusive contracts through their legal representative. The three claimed that their requests for the provision of settlement data were not accepted and the enforcement of slave contracts. SM then raised tampering suspicions, pointing out that Big Planet Made Entertainment, where MC Mong is serving as an internal director, was the outside force that tried to manipulate CBX. However, MC Mong denied the allegations.
Later, SM and CBX reached an agreement then Baekhyun established his own label INB100 in January this year after his exclusive contract with SM ended to start managing his individual activities with Chen and Xiumin. However, conflicts between both sides arose again recently when CBX’s agency INB100 held a press conference and declared war against SM.
In response, SM filed a lawsuit against CBX, demanding the fulfillment of their contracts, but CBX also sued SM claiming unpaid settlement and initiating an all-out legal battle.
