The court said the boycott hurt the "artistic welfare" of the fans who didn't get to see Lorde.
It came after the award show shut out its only female nominee for Album of the Year.
The pair wrote an open letter to Lorde, urging her to "join the artistic boycott of Israel."
This year's Grammys overwhelmingly celebrated male musicians—and Lorde was blocked from performing solo.
"If isolating and boycotting Israel and embracing Putin's Russia is not bigotry, then the word has no meaning."
The singer-songwriter is arguably the most high-profile artist in recent years to accede to the Boycott, Divestment, and Sanctions movement.
"Noted! Been speaking w many people about this and considering all options," she tweeted in response to an open letter calling on her to boycott Israel.