GungHo receives shareholder demand to sue chairman for 356 million yen
The demand letter alleges Kazuki Morishita failed in his duty to build an internal control system tied to losses from a former employee's misconduct.
GungHo Online Entertainment disclosed that it has received a shareholder demand letter seeking a lawsuit against chairman Kazuki Morishita for 356 million yen plus late payment damages, 4gamer.net reported. The letter concerns an alleged breach of Morishita's duty to build an internal control system, in connection with damage the company suffered from a former employee's misconduct.
The company said its auditors will investigate the contents of the demand letter and consider how to respond. GungHo added that it will promptly disclose whether it decides to file a lawsuit once a decision is made.
GungHo stressed that the shareholder's claim of a breach of duty is an assertion by the shareholder, and that the announcement does not constitute a decision to sue or a finding that Morishita is liable.
Earlier misconduct case
On August 14, 2025, GungHo disclosed misconduct by a former employee who placed fictitious work orders for himself through another company's outsourcing service and had business partners pay for nonexistent subcontracting fees. On September 8, 2025, a settlement providing for full repayment was reached with a business partner over about 100 million yen in improper payments.
On December 17, 2025, the company published progress on recurrence-prevention measures including separation of authority, revised order and payment approvals, and stronger training and internal audits. On July 8, 2026, GungHo announced that the former employee had been arrested that day on suspicion of breach of trust, and disclosed that a criminal complaint had been accepted on October 3, 2025.
Quick answers
How much is the shareholder demanding from GungHo's chairman?
The demand letter seeks 356 million yen plus late payment damages from chairman Kazuki Morishita.
Has GungHo decided to sue Kazuki Morishita?
No. GungHo said its auditors will investigate the demand letter and consider how to respond, and that it will disclose any decision on filing a lawsuit promptly.