SM Entertainment announced in a previous statement that they have filed a lawsuit against several Chinese companies who hired Luhan and Kris as endorsers without the agencies consent. SM's argument is that both former EXO members are technically still in a contract with the agency, thus any activity or contract entered into without SM's approval is considered in violation of the law. One of the companies, Chinese online shopping application DaLing, said they are confident they will win the suit against SM.
DaLing is being sued particularly for booking Luhan as one of its endorsement models without the necessary consent from SM Entertainment. A June 2 report from Sina stated that Luhan was an attendee at a promotional event for DaLing on June 1.
On the day of the event, a representative of DaLing presented their stance against SM Entertainment, "We're only a small company. When we saw that a popular news outlet has reported that we are being sued by SM Entertainment, we were very scared and confused at the same time. [Our confusion] stems from the fact that Luhan's contract termination case is being handled in Korea through a compulsory mediation. It's unusual that another law [related to this] is being filed in China since it doesn't adhere to customs."
The rep, furthermore, said in confidence that DaLing didn't start any problems, but should any problem pop then they are not afraid to face it. "This is our mindset. We are adamant that we will win."
In addition to their statement at the DaLin promotional event, the company also took to their official Weibo page to post, "If [we] are together, we will not be afraid of any threats. We're certain Luhan and DaLing will win. This is our official stance on the lawsuit between Luhan and SM Entertainment."