With Kris and Luhan continuing to accept projects and offers in China despite their ongoing legal dispute with SM Entertainment regarding their contracts, the agency have express its intentions to sue Chinese companies that are hiring Kris and Luhan for projects.
Technically, both former EXO members are still under a contract with SM Entertainment since their agreement is still legally binding while the contract nullification suits remain pending in the court. On May 20, SM Entertainment addressed Luhan's case, saying, "Since we are still Kris and Luhan's agency, we've finally decided to file a lawsuit against a cosmetic brand based in Shanghai and another against a technology company based in Beijing who hired Luhan as a brand endorser. We filed the lawsuits at the Beijing People's Court on May 18."
SM Entertainment are not just going after the companies that hired Kris and Luhan, but they agency is also filing lawsuits against the male stars as well. SM said, "To protect the legal interest of both EXO and SM, we will also file for damages, the ones that were raised in February back in Shanghai and Hong Kong," this is in relation to their suspicions that Kris and Luhan sought to nullify their contract with SM Entertainment after having gained fame from their promotions with EXO, and that they are now using this popularity to appear in movies, advertisements, and events without the approval of SM Entertainment and the involvement of EXO.
Because their actions show blatant disrespect to the contract they still have with SM Entertainment, Kris and Luhan have also caused contractual problems with Korean companies.
In the meantime, the courts have stepped in to announce that they will push the parties to mediate and get into a settlement regarding the contract nullification suits and counter suits.