A dispute between former ADOR CEO Min Hee-jin and HYBE over a put option worth about 26 billion won reaches its first conclusion after a year and a half.
On the 12th at 10 a.m., the Civil Division 31 of the Seoul Central District Court (Nam In-su, Director General) will postpone the verdict date for HYBE's lawsuit seeking confirmation of termination of the shareholder agreement against former CEO Min and for Min's lawsuit seeking payment for shares against HYBE.
The two lawsuits were filed in August and November 2024, respectively, but the court conducted parallel proceedings for efficient handling. Accordingly, the rulings will be issued together on that day.
Earlier, after resigning from her position as an internal director of ADOR in November 2024, former CEO Min notified HYBE of her exercise of the put option under the shareholder agreement. Under the contract, the ADOR put option amount is calculated by applying a multiple of 13 to the average operating profit of the two immediately preceding years and then applying 75% of the equity percentage held by the transaction party.
According to ADOR's audit report, Min Hee-jin exercised the put option to buy 18% (573,160 shares) of ADOR's stock, and based on the calculation period she was expected to receive about 26 billion won from HYBE.
However, HYBE announced in July 2024 that the shareholder agreement with Min Hee-jin had been terminated, bringing their legal conflict to the fore. In court, the timing of the termination of the shareholder agreement and whether there was a material breach sufficient to justify termination were the focus of the arguments.
HYBE argued that former CEO Min Hee-jin had already been notified of termination in July 2024 for attempting to "poach NewJeans," causing damage to the company, and that the put option rights therefore expired. Because Min had materially breached the shareholder agreement and been notified of termination, HYBE said the contract was not valid even if the put option was exercised afterward.
However, former CEO Min's side argues that the shareholder agreement was valid at the time she exercised the put option and that HYBE had no right to terminate the shareholder agreement. They also say that the NewJeans members' notices of termination of their exclusive contracts to ADOR were at the end of November 2024, so the put option exercise that took place before that was lawful.
Separately from the lawsuit, Min Hee-jin and NewJeans have gone their separate ways. Min recently founded ooak records and announced a full-scale new start, while NewJeans members Haerin, Hye-in and Hanni returned to ADOR.
ADOR said it is discussing matters closely with Min-ji and judged that it could not move forward with Danielle, so it terminated the exclusive contract and filed a damages lawsuit seeking about 43.1 billion won against Danielle's family member and former CEO Min Hee-jin.
[Photo] OSEN DB
[OSEN]