The former EXO member plans to start the "next chapter" of his life in the City of Angels.
Tao's father, who demanded Tao's withdrawal from EXO, is reportedly a self-made business magnate who turned $6,000 into over $3 billion over a decade.
Tao's legal team argued that SM Entertainment misled public opinion and will submit further evidence to the court.
The company won one of its numerous lawsuits against the Chinese pop star.
Kris was voted the most influential male in Asia at the 2015 Asian Influence Awards, beating his former EXO band mates Luhan, Tao and Lay, among other celebrities.