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NewJeans attends 39th Golden Disc Awards at Mizuho PayPay Dome in Fukuoka on January 4, 2025 in Fukuoka, Japan. (Photo by HLL/Imazins via Getty Images) ImaZins via Getty Images Following a favorable ruling in its long-running legal battle between NewJeans, HYBE shares rose on Thursday, October 30, climbing from 316,500 Korean won (approximately $221.77) to 324,500 KRW ($227.38) on the Korea Composite Stock Price Index (KOSPI) for a gain of just over 5% on the day. A Seoul court ruled on October 30 that the exclusive contracts between NewJeans and HYBE subsidiary’s label ADOR remain valid, rejecting the group’s effort to terminate the agreements that began in the second half of 2024. The court said ADOR did not breach its duties simply by removing ADOR’s former CEO, Min Hee-jin, and found the label had continued management work including album, performance and advertising preparations for the quintet. The five members’ legal team said they will appeal, and the members say their relationship of trust with ADOR is “completely collapsed.” ForbesK-Pop Group NewJeans Loses Court Battle Against Record Label—Group Says Trust ‘Completely Broken’By Conor Murray ADOR: “We Have Completed Preparations…And Are Waiting” After the ruling, ADOR issued a formal statement reiterating that the court confirmed the validity of the exclusive contracts and that the label had not neglected its management duties. The label shared that it has plans for NewJeans, including the release of a studio album, with ADOR calling for the artists to “calmly reflect on this matter.” HYBE’s global communications shared ADOR’s statement early on October 30 to international press: MORE FOR YOU Hello, this is ADOR. Today (October 30 KST), the Korean court ruled in the lawsuit confirming the validity of the exclusive contract between ADOR and our artist NewJeans, affirming that the exclusive contract between both parties remains valid. The court determined that ADOR did not violate any of its duties as a management agency, and that attempts to breach the exclusive contract by creating the appearance of a broken trust relationship should not be permitted. We express our deep gratitude for the court's decision. Since NewJeans claimed unilateral termination of the contract last November, we have cautiously watched a series of processes with a heavy heart and responded accordingly. This included the main lawsuit, an injunction application to prevent market confusion, the court granting that injunction, the artist’s immediate appeal, and the court’s decision to dismiss that appeal. For a period of nearly a year, the courts have repeatedly ruled in various related lawsuits that the label holds the position of management agency under the exclusive contract, and that the artist must engage in entertainment activities along with us. We sincerely hope that today's judgment, which comes after long-term verification of various claims and facts and reaffirms prior rulings, will serve as an opportunity for the artists to calmly reflect on this matter. ADOR is committed to re-emphasizing its role and responsibilities as NewJeans’ management agency. As we stated during the trial, we have completed preparations for the artist's activities, including the release of a studio album, and are waiting. We will do our utmost to return to the fans through discussions with the artist. NewJeans’ Response: Immediate Appeal, ‘Trust With ADOR Has Completely Collapsed’ Represented by Shin & Kim LLC, the members of NewJeans released an immediate statement following the Seoul Central District Court’s first-instance decision. Minji, Hanni, Danielle, Haerin, and Hyein remain adamant that it is “impossible to return to ADOR” and that trust between the group and label was “completely broken.” The NewJeans camp has signaled that it will continue to pursue the appellate process, while publicly thanking fans for their continued support. The legal statement reads in full (provided via Soompi): Hello, this is Shin & Kim LLC, legal representative for Minji, Hanni, Danielle, Haerin, and Hyein (hereafter the “members”). For the lawsuit filed by ADOR against the members for the confirmation of the validity of their exclusive contracts, the Seoul Central District Court ruled at the court of first instance today that the exclusive contracts are valid. The members respect the court’s decision, but given that their relationship of trust with ADOR has completely collapsed, they believe it is impossible to return to ADOR and continue their activities in the entertainment industry in a normal manner. Accordingly, the members will immediately appeal the first-instance ruling, and they hope the appellate court will once again comprehensively review the facts to date and the legal principles governing termination of the exclusive contracts and render a wise judgment. Lastly, we would like to express sincere gratitude to the fans who are waiting and showing support for this long period of time. Market Reaction: Stock Surge, Intraday strength Markets reacted positively to the court decision with CNBC noting HYBE’s market value jumped by roughly $644 million and that shares rose as much as 7.12% within the day following the ruling. Thursday’s move shows that investors welcomed legal clarity, which keeps one of HYBE’s most commercially valuable acts under contract. However, the ruling does not resolve a visible internal company issue — a risk that could complicate promotions, fan sentiment, and long-term monetization if the relationship remains publicly strained. HYBE and ADOR’s ability to actually execute album and touring plans while the parties litigate and appeal will be a delicate balancing act for management and investors alike. What’s Next for NewJeans, ADOR and HYBE (Photo by Jung Yeon-je / AFP) (Photo by JUNG YEON-JE/AFP via Getty Images) AFP via Getty Images With NewJeans’ legal team stating that it will appeal the Seoul court’s ruling, the dispute is likely to continue, even as ADOR says it stands ready with scheduled releases and promotions. For HYBE, the immediate priority will be executing planned business activity around the act while containing reputational fallout from continued public disagreement between artist and label. HYBE still has a packed schedule for many of its other artists before the end of the year. The label’s calendar includes NO LABELS: PART 01, the debut solo EP from Tomorrow X Together member Yeonjun, a new single album Not Cute Anymore from girl group ILLIT, alongside releases from KATSEYE and more in the works. 2026 also looks to be a banner year for the company, as it has confirmed BTS’ highly awaited comeback for March, as well as new boy band and girl group projects with collaborators like Geffen Records, along with producer and OneRepublic star Ryan Tedder. HYBE’s stock is up more than 65% year-to-date. Editorial StandardsReprints & Permissions
