Luhan Files For Embezzlement Against SME + Holds First Court Meeting

[sayuridoll.livejournal.com]

On the morning of August 19, Luhan’s and SM Entertainment’s legal representatives, Hankyul and BKL, respectively, met for their first court date, since the lawsuit to verify the invalidity of Luhan’s contract with SM was first filed in October of last year.

Regarding the grounds for the suit, Luhan’s camp states, “The lawsuit was filed due to an unfair contract. We also filed an additional suit for SM’s embezzlement and professional negligence.” According to Luhan’s representative, the investigation by the prosecution has ended, and what is left is a decision on the possibility of indictment.

The head judge then said that he heard SM wanted a peaceful resolution, to which SM’s side agreed. However, Luhan’s rep said, “I’m not sure what is meant by a peaceful resolution.”

The head judge inquired, “Isn’t the 30 million won (approx. 25,000 USD) [requested in the lawsuit] the main issue? The judge panel feels that a contract nullification for that is too much.”

Luhan’s side then explained that Luhan did not once receive a proper pay stub for over two years.

SM responded to the claim, stating that it wasn’t a situation where the profits were abundant, and that because Luhan is the one who signed the contract, he knew his earnings. “And Luhan knew that he hadn’t been able to yield benefits in the company yet, and his income wasn’t something that was important to him at the time.”

Luhan’s side shot back that regardless of being in the green or red, a detailed statement should be given, but none were received for two years. “That’s an undeniable violation of the contract. While statements were always requested, it was always pushed back under the reasoning that they had no time. Following, what we want is to receive proper statements and proper payment.”

His side further claimed that despite working nonstop with music, appearances in shows, dramas, and ads, all Luhan received was 10 million won (approx. 8,400 USD), and because they have no documents to verify this, they do not know if what they received is correct or not.

SM went on to dispute the embezzlement claim made by Luhan’s rep, saying that accusing the company of embezzlement because of a payment dispute is not right.

In the end, the judge panel proposed another mediation, to which both sides agreed. The date has been set for September 14.

Source: Soompi via Nate

Comments

[hipployta.livejournal.com]

So the fact they refused to show detailed pay stubs is all true...not that anyone doubted it. Luhan's side also low key pushing back on that bogus claim that was made about how much he was paid and making it clear he only received $8k.

SM is still trying to drag this out by claiming NOW they want to try a peaceful resolution...ugh

Kris' first court date is next month and he brought the pay issue from day one of his lawsuit so the fact SM still doesn't have any paperwork is shady as hell

[sand-nicky.livejournal.com]

SM stans kept telling me that SM had changed a great deal after the JYJ/Hangeng lawsuits. What a joke. They hadn't changed at all except for the contract length. Shady Management stays shady. Surprise there!

[oppameansit.livejournal.com]

as much as i'm on luhan's side on this i don't think embezzlement is the right term to be using since sm is the employer in the situation

illegal wage garnishment is more likely to stick

[tokyocinema.livejournal.com]

SM needs to give it up honestly. There are some alleged reports/rumors claiming that since october 2013, Luhan's made around 500k. Two years in a group and Luhan only came out with 8.4k?
Nah blud there's something wrong here.

I'm also looking at AKP (i know, ew, but only soompi and akp have posted on this) and they're saying that the courts are suggesting SM to lower the contract years or the contract termination fee or stuff about the distribution of the profits and SM's basically like "the other members haven't complained about profit distribution or anything!!!! only he has!!! ur accusations are totally false!!!!!!" but they won't release documents that prove Luhan and his reps's accusations wrong or atleast backup their own argument.

Anyway, I found this in my psd folder and I figure it's pretty appropriate~


EDIT: OP, some translators are translating other articles regarding the court case from Korean to Chinese to English.

Brief of Luhan's lawsuit with SM today. Another trial will be held on September 18th. pic.twitter.com/8BcuLJ8AiV (http://t.co/8BcuLJ8AiV)

— 鹿 (@ludeerstar) August 19, 2015 (https://twitter.com/ludeerstar/status/633901777360846848)

(cr. ludeerstar)

[TRANS] Explanation- Some important points organized and translated from today’s trial with SM http://t.co/Udq8a5ZA0J (http://t.co/Udq8a5ZA0J) pic.twitter.com/JQgHYYoPSe (http://t.co/JQgHYYoPSe)

— 瑜 (@shuaijerks) August 19, 2015 (https://twitter.com/shuaijerks/status/633908289844088832)

(cr. shuaijerks (http://shuaijerks.tumblr.com/post/127062665223))

Fuck SM and their greedy asses--Luhan & co shouldn't even be offering them 10% of his earnings until 2019, let alone a fart to fucking sniff at. I'm happy things are looking favorable for Luhan but I'm worried SM will pull some shit just to say that their illegal 10 year contract is legal because Luhan's doing foreign activities.

I wonder what shit they'll pull on Kris, come September 2nd tbh

[lightframes.livejournal.com]

That gif is destroying me!

[simprov.livejournal.com]

daaaaaamn. so did exo finally start getting paid around when luhan left?? or are the members spending their parents money on expensive shit?? or do we think exo-k was getting paid while exo-m wasnt??
every new thing that comes out just exposes more and more how terrible sm is and im here for all of this JUICE

[pseudo-shigure.livejournal.com]

"or do we think exo-k was getting paid while exo-m wasnt??"
PLS DON'T PUT THAT IDEA INTO MY HEAD. I ALREADY HATE SM SFM AS IT IS I DON'T NEED THIS MY POOR M BABIES TT______TT

[stargazer789.livejournal.com]

So all SM has to do is provide proof that payment is correct, I don't understand why the judge can't just request for the proof of wages instead of proposing another mediation, because they're going no where. I do enjoy learning more on what is really going on within the company and their artist though.

[ashiva.livejournal.com]

JYJ tried that. It never worked as SM kept bringing all kinds of bullshit excuses and defying the court orders.

[kjc48.livejournal.com]

lmao, I love SME lawsuits. It's like a game of "what could go wrong: will go wrong".

They really should just let the EXO-M members free.

[iznanassi.livejournal.com]

LOL @ Embezzlement. I can see why I guess it's to pressure SM to actually prove where the money went but they could've actually gotten something if they had pressed charges for wage garnishment.

When they say two years do they mean up until before Overdose or also during all of 2014? I'm assuming the former in which case I can kind of see why only $8K all things considered BUT SM has no excuse to be giving their artists so little of the pie. Their operating expenses are so low they can afford raises.

[ohmontauk.livejournal.com]

I can see why it would be embezzlement since they're not talking about an employee contract but a profit-sharing contract. SM should be able to present the profit breakdown since the other party is definitely entitled to it.

[atopworld.livejournal.com]

The more you know.....wow.

[cafetin99.livejournal.com]

I wonder if Lay and the rest of EXO are -really- doing well and getting a proper paycheck, considering the individual activities they are doing aside from being in EXO.

[kingpsyborg.livejournal.com]

SM responded to the claim, stating that it wasn’t a situation where the profits were abundant

is sm trying to say that exo isn't making them money....

[hipployta.livejournal.com]

LOL

[xxhna.livejournal.com]

I love their groups but geez what a terrible company. They are in the wrong and still trying to drag it out this long? Give it up. You're wasting even more money and resources. UGH.

[pseudo-shigure.livejournal.com]

but he didnt really have personal schedule right? and M only had meilishuo for cf, so i guess they all received around the same amount, esp in M that barely had any personal work

[pseudo-shigure.livejournal.com]

"and his income wasn’t something that was important to him at the time"

.....................you're still obliged to pay them

[extraenchanted.livejournal.com]

mte. that argument is so lame.

it might be a cultural thing as well, since i can relate, saying "no, it's okay not to get paid much" when i'm doing freelance work. there's always the humility factor involved. but even so, i've had family/friends who have insisted to pay me for doing work -- and that is the right thing to do. (but then i insist on giving them discounts lol)

in the case of luhan vs sm though, bringing up that money wasn't important to him is stupid, because he was an employee who trained and signed the company's contract, and as such should be given proper wages. he wasn't a freelancer.

[citypolaroids.livejournal.com]

lu han getting paid only $8k for 2 years worth of work doesn't make any sense no matter how you look at it. sure, exo wasn't making much money at all during the first year following their debut even though they were hustling between korea and china for constant promos, but xoxo and the repackage sold over 1 million copies and they were banking it in all the following releases since then up until when he left the group, so they can't possibly claim that he wasn't making them any money esp considering how much exo must have brought in with endorsements following their explosion in popularity. i don't buy the claim that he didn't make them enough money for him to be paid more than $8k for 2 years of being constantly overworked in both countries and being among the most popular members that helped to bring in the biggest proportion of sales and endorsements. At. All. and wtf is this bullshit about lu han not expecting to get paid bc ~he knew he didn't bring the company any profits~. everyone expects fair wage compensation for their work, regardless of whether the company is making profit or not, and they certainly were during the years that lu han was employed, as an employer sme is obligated by law to pay their employees and to provide documented proof of their earnings. none of what sme is saying here sounds logical or even legal. they're not giving real answers, just dodging every valid attack with an equally invalid excuse. for such a large company that rake in as much money as they do, sment is goddamn weak and shady in terms of taking care of legally binding contracts. i still can't fathom the fact that they've had so many law suits of this nature and they haven't managed to clean up their act in the finance and legal departments. what a goddamn mess.

also wtf is the head judge even saying, how can he shield sment and listen to their requests but not lu han's side when they're the ones lacking solid evidence that the prosecution requested. where's the goddamn warrant for a search and seizure. what is korea's legal system even doing. goddAMN.

[hipployta.livejournal.com]

All I can say to this comment is DRAG HA

[greenmoon666.livejournal.com]

why is there no "sm legal drama" tag?

[ckino (from livejournal.com)]

Luhan’s rep said, “I’m not sure what is meant by a peaceful resolution.”

I read that in a bitchy tone.

[violoncelliste.livejournal.com]

exactly this cx

[extraenchanted.livejournal.com]

LOL SM. just because your idols are saying they love their job singing/dancing/entertaining fans that doesn't mean they don't want to get paid. ofc they want to earn income.

[bauci.livejournal.com]

they need a new judge

[ashiva.livejournal.com]

Considering JYJ never managed to get SM to show their income statements (court ordered them to show them, but SM just kept defying that order) I can see why Luhan is suing for embezzlement as that's a criminal charge and thus court can send their own investigators into the company instead of having to wait forever SM to submit those statements.

[asth77.livejournal.com]

Oh ic thanks for this.

[slowitdownbaby.livejournal.com]

I really just want Kris, Luhan, and the rest of the SM refugees to clean house and drag SM to the pits tbh.

[luinmyheart.livejournal.com]

SM's definition of being reasonable is completely absurd. Ridiculous.

[ashiva.livejournal.com]

I always wonder standards of Korea's stock exchange as no way publicly traded company should be able to pull off this kind of shit.

[lynethia.livejournal.com]

Not surprising given Lee Sooman was investigated by Interpol on claims of embezzlement in 2003, IIRC.

[magicpineapple.livejournal.com]

Idk how accurate this is or if it's an edit, but...

[asth77.livejournal.com]

I'm amazed @ their excuses.

[snowyirees.livejournal.com]

Ockham's razor. They have everything to hide because those reports are probably incredibly manipulated.