The three members “ Micky , Hero , and Xiah – have now been sued by a Chinese company for fraud. The plaintiff is the distributor of CreBeau products in the Shanghai, Jiang Su and Sanxi region. CreBeau is the name of a Chinese cosmetics company, which supposedly have brought in the three TVXQ members into the business as its shareholders.

The plaintiff claimed Micky, Hero, and Xiah failed to show up at the product launching event on July 16th, leading to a massive complaints and product returns from unsatisfied customers and causing immense damage to the plaintiff. The lawyer of the three members said that the members and even Xiah's father had apologized for the absence. But the plaintiff said that the company decided to invest in the venture, because the plaintiff wanted to capitalize on the popularity of TVXQ in the Chinese-speaking region and was promised their full involvement in promotional activities. The plaintiff stated that the three were fraudulent, because they failed to keep up their end of the bargain.