Tabikobo, a Japan-based travel agency, will file a damages lawsuit against former President and CEO Yasuhito Takayama. A provisional attachment of the shares he holds has also been decided.
According to the company, Mr. Takayama devised and actually had furloughed employees work while receiving Japans Employment Adjustment Subsidy. Despite recognizing this constituted fraudulent receipt, he submitted false applications and continued to approve them, which the company says constitutes liability for neglect of duties under Article 423, Paragraph 1 of Japans Companies Act.
The amount of damages sought is under review, but at a minimum will include the portion of the repaid Employment Adjustment Subsidy that the company would have legitimately been able to receive absent the fraud, as well as penalty and delinquency charges related to the repaid subsidy, and the costs of the Special Investigation Committee.
In October, Tabikobo booked as an extraordinary loss 263,595,000 yen in penalties and delinquency charges arising from the fraudulent receipt of the Employment Adjustment Subsidy, and 385,890,000 yen in special investigation costs.
Additionally, provisional attachment decisions were rendered on September 11 and October 3, and a provisional attachment of 1,373,900 shares has been completed. Based on todays closing price on November 7, the shares are worth approximately 225.32 million yen.
Mr. Takayama is the second-largest shareholder after Adventure. After he resigned in February 2023 as Tabikobos President and CEO, he founded a travel company, gotcha, in July of the same year.
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