On November 15, Min Hee-jin shared a fan art with the phrase “NewJeans Never Die.” This attracted attention because it resembled a fan art shared by NewJeans member Hanni last month, who had shown support for Min Hee-jin ahead of her conference, “Good luck today, CEO! Of course, you will crush it.
The post gained even more attention due to the ongoing legal dispute with HYBE.
Earlier this month, Min Hee-jin exercised her put option (right to sell shares) with HYBE. According to the shareholders’ agreement, exercising the put option means that Min Hee-jin is entitled to receive an amount calculated by multiplying ADOR’s average operating profit over the past two years by 13, divided by the total number of shares issued. In this case, Min Hee-jin would receive about 26 billion won (about $19.26 million), as ADOR posted a deficit of 4 billion won (about $2.96 million) in 2022 but made a operating profit of 33.5 billion won (about $24.02 million). million dollars) in 2023.
However, Min Hee-jin cannot receive the payment immediately. HYBE filed a lawsuit in July to void the shareholder agreement, claiming there were trust issues and other factors. The outcome of this lawsuit will determine whether Min Hee-jin will be able to exercise her put option.
Additionally, NewJeans sent a formal letter to ADOR and CEO Kim Joo-young. The letter demands strict action regarding an internal HYBE document that included a statement about Min Hee-jin’s return as CEO and the suggestion that “New (NewJeans) can be replaced by a new team.” It also demands an official apology from the manager who allegedly told Hanni to “ignore them.” Members were warned that if these issues were not resolved within 14 days, they would terminate their exclusive contract.
If NewJeans terminates its contract with HYBE, it could face a fine of more than 4.5 trillion won (about $3.23 billion). To avoid this, they would have to prove HYBE’s fault and win the settlement case. The key factor in the case would be whether the relationship of trust between the two parties has been damaged beyond repair and who is to blame.
While this legal battle is ongoing, it could lead to a setback in NewJeans’ operations, which would be a huge blow, especially since they are only in their second year since debuting.
ADOR stated on November 14, “We have received the formal letter and are examining it. We are aware of the specific requests and will do our best to resolve the matter wisely so that we can continue to work with artists.” The public is now watching closely to see whether the two sides can reach a dramatic agreement.
Source: Nate
