Ex-Universal Entertainment president ordered to pay $43 million
Japan’s Supreme Court has by Jun Fujimoto, the former president of Universal Entertainment Corporation, thereby upholding a prior ruling that he breached his fiduciary duties as a director. This decision, delivered on 19 February 2025, obliges Fujimoto to compensate the company approximately $43.5 million (41.5 million).
The legal proceedings trace back to August 2019 when a shareholder lawsuit accused Fujimoto of authorising the transfer of nearly $43.5 million (41.5 million) to an external entity without valid justification and circumventing internal approval protocols.?
Initially, the Tokyo District Court dismissed these allegations in June 2022, citing that the requisite board approvals had been secured and that Fujimoto’s actions were not deemed unreasonable.?
Legal battle and court rulings
However, the Tokyo High Court reversed this decision in April 2024, concluding that Fujimoto had indeed violated his fiduciary responsibilities.
Following this appellate ruling, Fujimoto resigned from his positions as Representative Director, President, CEO, and CIO of Universal Entertainment. In a related case, Universal Entertainment sought damages against the shareholder who initiated the lawsuit, accusing them of defamation. This claim was dismissed by the lower courts, and the Supreme Court has now upheld that decision, requiring the company to bear its own legal costs.
Universal Entertainment Corporation, founded in 1969 by Kazuo Okada, has evolved from manufacturing jukeboxes to becoming a prominent entity in the gaming industry. The company is the parent of Tiger Resort, Leisure and Entertainment Inc., which operates the Okada Manila 바카라 resort in the Philippines.
History of internal disputes
Over the years, Universal Entertainment has expanded its portfolio to include pachinko and pachislot machines, as well as integrated resort management. The company’s history has been marked by internal disputes and legal challenges. Kazuo Okada, the founder, was ousted from the company’s board in 2017 amid allegations of financial misconduct.
This led to a protracted legal battle over the control of Okada Manila. In April 2022, representatives associated with Okada temporarily seized control of the resort, leading to a three-month standoff. Philippine authorities intervened, and by November 2023, the Supreme Court of the Philippines ruled that Okada had been properly removed from his leadership roles, thereby restoring management control to Universal Entertainment.
The recent Supreme Court decisions in Japan mark the end of a prolonged legal battle for Universal Entertainment, highlighting the significance of fiduciary duty and strong internal governance. As the company moves forward, the rulings may lead to more transparency and accountability in the day-to-day operations of Universal Entertainment Corporation.
