Fuji TV Softens Legal Stance on Masahiro Nakai as Major Sponsors Resume Commercials

The lawsuit was considered as a way to vent pressure to shareholders and within the company

It seems various agendas are intersecting.

Fuji Media Holdings (Fuji MHD), the parent company of Fuji TV, held its shareholders meeting on June 25 in Tokyo.

The issue, triggered by former talent Masahiro Nakai’s (52) female-related trouble, escalated and caused Fuji MHD to post a 32.8 billion yen loss in the fiscal year ending March, mainly due to a halt in commercial advertising.

The highlight was a shareholder proposal by the US fund known as an activist shareholder, Dalton Investments, demanding the appointment of 12 new directors. However, the proposal was overwhelmingly rejected, and Fuji’s proposal to appoint 11 new directors was approved.

“This means existing shareholders approved Fuji’s reform plan. There was a strong rejection of the foreign takeover attempt by Dalton and others. Fuji has a stock option system, and many employees are shareholders themselves. Although their influence is limited, most voted for Fuji’s reform plan, essentially self-reconstruction,” said a sports newspaper reporter.

However, this does not mean all the issues are resolved. During the meeting, questions were raised regarding claims for damages against former talent Masahiro Nakai, who was the root cause of the entire problem.

“Do you intend to sue Nakai?”

Fuji President Kenji Shimizu replied,

“In pursuing criminal and civil responsibility, while working to restore trust, we think it is necessary to carefully consider the opinions of lawyers and experts.”

He did not rule out the possibility.

Opinions on the effectiveness of suing Nakai are divided even among legal professionals. Sponsors stopped running commercials not because of Nakai’s actions themselves, but due to loss of trust in Fuji’s governance revealed by the trouble. Because of this, many experts say,

“Suing Nakai is a high hurdle.”

On the other hand, among stakeholders and Fuji employees unrelated to the trouble, feelings in favor of punishing Nakai remain strong. If Nakai had not gotten involved with Ms. A, none of this would have happened.

“In that regard, there are voices within the company saying Nakai should be sued regardless of winning or losing. It is necessary to vent pressure for shareholders and employees,” said an impassioned Fuji TV insider.

After the shareholders meeting, President Shimizu commented on Ms. A, who has been suffering from slander and defamation:

“I think she expects us to stand together and face this challenge.”

He also mentioned that legal action is one of the options against malicious attacks.

This statement places additional pressure on Nakai, according to a television industry insider:

“Initially, Ms. A was dissatisfied not only with Nakai but also with Fuji for their insincere response. However, after President Shimizu apologized directly and showed sincerity, her attitude softened. This can be seen as Fuji successfully bringing Ms. A onto their side. If Fuji decides to proceed with a lawsuit against Nakai, it’s not impossible that Ms. A might lend her support.”

Meanwhile, following the shareholders meeting, Fuji TV has received good news as companies like Suntory, Daiwa House, Daito Trust Construction, and Lotte have decided to resume airing commercials. The management prioritizes restoring trust, and rushing into a bitter lawsuit with Nakai at this timing could risk turning back the clock.

Considering the overall burden on Ms. A

“If the case goes to court, public attention will once again focus on Fuji TV. There’s no guarantee that new facts will emerge. Since the resumption of commercials has finally come into view, obsessing over Nakai may not be the best strategy,”

said a Fuji TV employee calmly.

When asked whether Fuji TV is still considering suing Nakai despite the return of commercial sponsors, they responded:

“As a company, we believe that implementing improvement measures aimed at revitalization and reform to restore trust as quickly as possible is our top priority. Regarding pursuing responsibility against Masahiro Nakai, we are consulting external lawyers and examining the matter, but considering comprehensively the possibility that Nakai may be held legally responsible in court, the potential amount of damages if responsibility is established, and the overall burden on Ms. A if a lawsuit is filed, we believe it is necessary to make a cautious decision.”

Previously, Fuji TV had told this site:

“Regarding a lawsuit against Masahiro Nakai, we will consider it while implementing measures to restore trust and taking experts’ opinions into account.”

This time, by mentioning the burden on Ms. A and adding the phrase make a cautious decision, it gives the impression that Fuji TV has somewhat toned down its stance on suing Nakai.

On July 6, a review program about the series of issues was broadcast, suggesting a desire to put an end to the scandal.

On the same day, Nakai’s side lodged a fourth protest with the third-party committee. With Fuji’s business performance improving, will Nakai be spared after all?