Hong Kong actress Cecilia Cheung is allegedly involved in a breach of contract lawsuit against Haisong Group which accused her of fraud after failing to show up for a recording session.

Yu Yu Xing , Cheung's manager and also the chairman of Asia Entertainment Group, is said to have previously signed a contract with Haisong Group last July 16 in an agreement that the actress will participate in a recording for a program they were releasing.

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However, the actress purportedly failed to show up a week before the show is supposed to be recorded.

According to Haisong Group President Gong Ting Hai, she has contacted Cheung and has agreed to take the part. Her manager, Yu, signed the contract as a proxy and was later paid 2 million yuan as a deposit.

Despite having the contract signed and being paid the fees, Chung did not turn up and is now being sued by the company which claimed that the turn of events has damaged the reputation of the program which then resulted to sponsorships being withdrawn.

Gong is said to have reported the incident to the police, adding that they will hold Yu responsible for said issue, but will also hold Cheung liable for breaching the contract.

Haisong Group announced that they have reported the fraud case to the Chao Yang Sub-Bureau of Beijing Municipal Public Security Bureau and also hired a lawyer in the city to sue the actress. The company is now demanding for a compensation of 5 million yuan.

Gong has also submitted a receipt of deposit as well as the signed contract for evidence purposes.

In response to the matter, Yu has come forward to clear the issue, saying that Gong was the one who broke the terms in the contract first.

In an official statement that the manager released to the media, he said that he and Cheung did not breach any of the terms stated in the contract, adding that Gong was the one who decided to change the channel the show was supposed to be aired on.

According to Yu, the first contract that he signed indicated that the show will be aired on China's Hunan TV, but was later changed to Dragon TV. Yu claims that the changes have been made without notification.

"This is already a breach of contract in the first place. Besides, the structure, content and guests were altered too. Cecilia followed the contract so she certainly had rights not to attend," says Yu.

Yu has also stated that he has hired a lawyer to tell Gong that Cheung will not be attending the recording way before the date she was supposed to have showed up.

Despite the lawsuits, Yu stated that he hopes that matters will be settled peacefully while Cheung has also broken her silence last Monday, stating that changing the channel for the broadcast was already a breach of contract in itself.

TagsCecilia Cheung, Haisong Group