SM Entertainment announced Thursday that it has filed a damage suit against former EXO member Luhan and the companies that used Luhan as an advertisement model.
The lawsuit, which seeks damages for breach of contract and copyright violations, was officially accepted by Shanghai courts on Wednesday. A similar suit against another former EXO member, Kris, is forthcoming, SM said.
Kris and Luhan unilaterally left EXO and returned to China in May and October 2014 after filing contract termination lawsuits against SM.
SM Entertainment released a formal statement explaining its own legal action, stating that Kris and Luhan have "used EXO's fame to appear in movies, advertisements, events and awards shows" after leaving the band but were still legally bound to their exclusive contract with SM.
The agency emphasised that Kris and Luhan's contracts remain legally valid until a court officially recognises their termination.
The lawsuit, filed by SM in coordination with the international law firm King & Wood Mallesons, asks the court to award damages for all illegal appearances made by Luhan since he left Korea, which the agency claims has caused major financial damage to the agency. The suit also names the companies that hired Luhan as defendants, saying that they also infringed upon SM's rights.
SM said it would take "all possible legal actions" to prevent further financial damage to the agency and EXO in China and other regions as well.