Today (Feb 5), the company has stated their standing on the matter through a press release, which fully says:
As the legitimate agency of EXO members Kris (Wu Yi Fan) and Luhan, Korea SM Entertainment has officially filed a formal complaint (lawsuit) against Luhan, who is illegally carrying out entertainment activities, and advertisers who are using Luhan as their model. The lawsuit has been received by the Shanghai court on February 4, 2015. From now on, we will prevent Kris and Luhan’s illegal entertainment activities and we are now declaring the company’s official standing in this matter to avoid further damages.
Kris and Luhan filed Korean lawsuits against us in May and October of 2014 (respectively). After doing this one-sidedly, they used EXO’s fame to take part in various movies, advertisements, events, and awards ceremony. These activities have infringed the rights of the EXO members and SM, at the same time also caused a great economic losses to us and our partners.
We have invested a massive amount of material and human resources to make EXO a top group in the short period of 2 years. Kris and Luhan had left the team without a just cause and after they gained fame through the group’s name, they ignored the contract, trust, and morals to look for their personal benefits. This action has betrayed the trust of the members also the company, and is also an abuse to the legal system.
The contract with Kris and Luhan will continue to remain in effect (is still valid) until the final judgement is made by the court. We will hold them responsible for all the illegal activities carried out during this period. In addition, any commercial activities they have conducted on their own, including movie and advertising promotions, are considered as contract breaching actions. Also, any companies or individuals that have supported the two are considered as infringing the rights also profits of SM and EXO. Hence, we will also hold them responsible and take legal action against them.
We have filed this formal complaint through our law firm in China, KING&WOOD MALLESONS, against Luhan and advertisers working with Luhan, and we will also take all legal measures to protect ours and EXO’s rights also profits.