Japan’s Universal Entertainment has faced a legal setback, after the Tokyo High Court delivered a verdict against its founder and CEO, Jun Fujimoto, in a shareholder lawsuit.
The lawsuit, filed by a shareholder on August 26th, 2019, accused Fujimoto of causing the company to transfer $4.34 million outside its purview without proper justification or adherence to internal protocols.
On June 30th, 2022, the Tokyo District Court had dismissed the claim, stating that the company had followed necessary procedures and that Fujimoto’s decision was not materially unreasonable.
Unsatisfied with the ruling, the plaintiff appealed to the Tokyo High Court, which issued its judgment on April 25th, 2024.
Contrary to the earlier decision, the High Court held Fujimoto responsible for breaching his fiduciary duty as a director, ordering him to compensate the company for the aforementioned amount along with corresponding penalties for delay.
In response to the ruling, Universal Entertainment stated it would carefully review the court’s decision before determining its next steps.
Additionally, the company mentioned a separate defamation case filed against one of its shareholders, which was examined alongside the previously mentioned lawsuit. The company’s claim in this matter was denied, prompting plans to file an appeal.
‘The repercussions of these legal developments on Universal Entertainment’s business performance remain uncertain. The company has assured stakeholders that any significant impacts will be promptly disclosed as required,’ Universal pointed out.
