Universal Entertainment Corp. (UEC) of Japan is considering a claim for damages against its former director, president, chief executive and chief information officer Jun Fujimoto. UEC claims Fujimoto breached his fiduciary duty to the company in the transfer of US$43.5 million to an external entity.
As reported by Inside Asian Gaming, on April 25 Tokyo’s High Court determined that Fujimoto did not follow company policy and procedures when he transferred the funds.
UEC said it would 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.”
Moreover, the company stated, its new representative director and president have “established a task force to strengthen cooperation with the outside directors and corporate auditors and to obtain advice from external experts. The impact on the company’s business performance has not yet been determined.”
In 2017, Fujimoto replaced UEC founder and former CEO Kazuo Okada, who himself was accused of misappropriating company funds. In 2015, in a shareholder challenge, both men were accused of breaching their fiduciary duties on various matters, including a total of US$40 million paid to a Philippine consultant working on Okada Manila, an integrated resort in Manila’s Entertainment City.
