ADOR, a label under HYBE, will file a lawsuit seeking liquidated damages and compensation against NewJeans member Danielle, who is in a dispute over an exclusive contract.
ADOR said on the 29th that after discussions with Danielle, it determined it would be difficult to continue together as an artist under ADOR and notified her today of the termination of the exclusive contract. ADOR also said it will hold Danielle's side legally responsible for causing the current dispute, NewJeans' departure, and the delay in their return.
ADOR plans to file a lawsuit this afternoon against Danielle's side seeking liquidated damages and compensation. The claimed amount is expected to reach hundreds of billions of won. The amount for liquidated damages and compensation is expected to be calculated based on clauses specified in the exclusive contract.
According to the entertainment industry, the liquidated damages and compensation amount will likely be based on ADOR's operating profit and Danielle's remaining contract period.
ADOR posted 111.1 billion won in revenue and 30.8 billion won in operating profit last year. The exclusive contract with Danielle runs until July 2029, with more than about four and a half years remaining, and the damages are expected to be calculated by comprehensively considering factors such as Danielle's contribution to the operating profit expected during that period and the impact on group activities. ADOR was effectively operated under a one-team NewJeans system.
An attorney specializing in entertainment said the court is expected to determine the amount of liquidated damages and compensation by comprehensively considering the agency's actual operating profit, the artist's contribution to revenue, the remaining contract term, and which party is at fault for the termination. In Oct. last year, the court ruled that the exclusive contracts between the five NewJeans members and ADOR were valid.
On this day, ADOR said that after discussions with NewJeans member Hanni, she decided to return to the agency. Discussions on a return are also underway with Min-ji, who is said to be taking a positive stance on returning to the agency.
Previously, in Nov., ADOR announced the official return of Haerin and Hye-in after prior consultations. As a result, the likelihood has increased that NewJeans will continue activities as a four-member group without Danielle.