HYBE, SM Entertainment, JYP Entertainment and YG Entertainment saw an average decline of 4.3% this week as music stocks overall were up 0.2%.
HYBE label Belift Lab disputes the former ADOR CEO's claims that ILLIT's debut too closely mirrored NewJeans.
"New developments have occurred since the investigation," counters HYBE.
The 20-company Billboard Global Music Index fell 3.7% to 2,896.56, its second consecutive drop.
The executive appeared before financial regulators last month to address the allegations.
The South Korean company plans to launch an Indian division in September or October.
Braun will remain on the board of directors and as a senior advisor to HYBE CEO Bang Si-Hyuk, but will relinquish his day-to-day responsibilities to Isaac Lee.
A Seoul court granted a request by the group's agency, ADOR, to prevent members from performing without prior approval. A second hearing is scheduled for Thursday (June 5).
The K-pop company's stock declined 6.8% for the week ended May 30 as the 20-company Billboard Global Music Index was unchanged.
Tencent Music becomes the second-largest shareholder in SME, after Kakao.
