Activist investor calls on game publisher GungHo to file $2.25 million lawsuit against former CEO over alleged failure to prevent fraud by an employee

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A shareholder of game developer and publisher GungHo Online Entertainment has requested that the company file a lawsuit against its former CEO Kazuki Morishita (now chairman and chief development officer).

They allege that while serving as the company’s president, Morishita failed to establish adequate internal controls, which resulted in misconduct by a former employee and, by extension, significant financial losses.

The request seeks 356 million yen (about $2.25 million USD) in damages, plus delay damages.