GGRAsia – Universal Ent might seek damages against former president

Universal Ent might seek damages against former president

Jun 03, 2024 Newsdesk Industry Talk, Japan, Latest News

Universal Entertainment Corp, the parent of the Okada Manila casino resort in the Philippines, says it has taken the “necessary measures” to ensure its “right to claim damages against” Jun Fujimoto, who resigned in April as president of the company.

Mr Fujimoto stepped down from his role following a ruling in the Tokyo High Court on a shareholder lawsuit dating back to August 2019.

The court found Mr Fujimoto had caused Universal Entertainment to transfer nearly US$43.5 million outside the company without reasonable necessity and without following internal decision-making procedures, thereby breaching his fiduciary duty or duty of loyalty as a director of the company. The ruling said he was also liable for compensation to Universal Entertainment.

Mr Fujimoto, who was also the group’s chief executive, is now identified by the company as a director.

The Japanese conglomerate said in a Friday announcement that Mr Fujimoto had filed an appeal to the Supreme Court on May 9, against the judgment from the Tokyo High Court.

“The company has decided to take necessary measures to ensure that our right to claim damages against Mr Fujimoto will be preserved in case the judgment becomes final and binding as it stands,” stated Universal Entertainment.

It added: “A task force has been established to ensure that the preservation measures are properly implemented.”

The group said it has taken steps to ensure that Mr Fujimoto’s assets are “preserved”, including his real estate, 658,000 shares of Universal Entertainment’s stock, as well as “deposits, and directors’ remuneration”.

In order to “take effective and efficient measures” to preserve the claims against Mr Fujimoto, Universal Entertainment said the freshly created task force would “strengthen cooperation with the outside directors and corporate auditors and to obtain advice from external experts”.

Its main duties involve implementing “appropriate measures for the preservation of the claims”, study “collection and recovery” methods, and consolidating “information and responses” regarding the lawsuit, said the announcement.

In April, Universal Entertainment appointed Hajime Tokuda as group president and a representative director; and Takako Okada as a representative director.