GungHo Online Entertainment settles misconduct case, recovers 100 million yen

GungHo Online Entertainment, Inc. announced on September 8, 2025, that it has reached a settlement with a counterparty involved in a misconduct case where a former executive-level employee improperly paid outsourcing fees. This resulted in the outflow of company funds totaling approximately 100 million yen. The company had previously filed a petition for a provisional attachment order against the counterparty's assets, which was granted by the Tokyo District Court, to facilitate recovery.

Under the terms of the settlement, the counterparty will make a lump-sum payment of 70 million yen promptly to GungHo. The remaining balance will be repaid in monthly installments from the end of October 2025 until the end of June 2026. This full recovery follows an earlier disclosure on August 14, 2025, regarding the former employee's actions, who has since been dismissed for cause.

GungHo Online Entertainment, led by representative director and president, CEO Kazuki Morishita, and with financial oversight from director and CFO Kazuya Sakai, anticipates that the impact of this settlement on its consolidated financial results for the fiscal year ending December 2025 will be immaterial.