ADOR, the agency for girl group NewJeans, will begin this month a damages suit worth about 43 billion won against former NewJeans member Danielle, her family, and former CEO Min Hee-jin (now CEO of ooak).
According to legal sources, the Seoul Central District Court's Civil Agreement Division 31 (Presiding Judge Nam In-su) will open the first preparatory hearing at 10 a.m. on the 26th in the damages suit ADOR filed against Danielle's side and the former CEO. Civil Division 31 is the panel that last month ruled in favor of the former CEO in the put option (stock purchase right) suit between the former CEO and HYBE.
ADOR, a HYBE label, in December last year, when it was in a dispute over exclusive contracts with NewJeans members, terminated Danielle's exclusive contract and filed a damages suit. The aim is to hold Danielle's side and the former CEO legally responsible for causing the current dispute and for NewJeans' departure and delayed return.
The NewJeans members had been demanding the return of the former CEO, who was dismissed after a conflict with HYBE. But when that request was not accepted, they argued in November last year that the contract had been terminated due to ADOR's breach of the exclusive contract. ADOR, however, said the contract with NewJeans remained valid and filed a suit in December of the same year to confirm the validity of the exclusive contract. The Seoul Central District Court's Civil Agreement Division 41 (Presiding Judge Jeong Hoe-il) ruled the contract was valid, siding with ADOR.
However, on the 12th of last month, in the first trial of the lawsuit seeking payment for stock sales that the former CEO filed against HYBE, the court ruled in favor of the former CEO, saying, "HYBE must pay 25.6 billion won in put option proceeds." This suit began after the former CEO notified HYBE of exercising the put option in November last year, and HYBE argued that the shareholders' agreement was terminated and the put option right extinguished due to the former CEO's attempt to "take NewJeans away."
At the time, the court found that "it can be acknowledged that the former CEO sought ways to make ADOR independent from HYBE," but also determined that "that circumstance alone cannot be seen as a serious breach of the shareholders' agreement in this case."
Afterward, on the 25th of last month, the former CEO proposed to HYBE that the parties halt civil and criminal disputes in exchange for giving up the 25.6 billion won put option proceeds, saying NewJeans should be allowed to create an environment where "all five" can freely pursue their dreams. This appears intended to halt ADOR's suit against Danielle's side and the former CEO and to allow NewJeans to continue activities as a complete five-member group.