The Seoul Central District Court ruled against Tao in the lawsuit against SM Entertainment on 28th April 2017.
The lawsuit was filed against SM Entertainment regarding many issues such as the length of his contract, the amount of profit Tao would receive, discrimination and more,
Tao’s legal team stated that the contract drawn by SM Entertainment was unfair. SM Entertainment responded by saying the contract they used is a standard contract and is provided by the Fair Trade Commission, meaning there should be no issue with the contract at all.
Mediation failed as both sides could not come to an agreement after the court ruled that they should have a mediation meeting last September.
SM Entertainment, last December did try to sue Tao with his activities within Chinese Entertainment but that was dismissed.