Livedoor damages lawsuit settled

Kyodo News

The former management of Internet venture Livedoor Co. and its successor, LDH Corp., have reached a settlement on compensation for damages they allegedly caused through securities law violations.

Six people, including former Livedoor executives Ryoji Miyauchi, 42, and Fumito Kumagai, 32, agreed to pay a total of ¥760 million, ending a legal battle at the Tokyo District Court in which LDH was seeking around ¥36.3 billion from the six and former Livedoor President and founder Takafumi Horie.

Horie, 37, already reached a settlement with LDH in December by agreeing to provide assets worth ¥20.8 billion.

The remaining six admitted their responsibility and agreed to provide assets or pay in installments. Miyauchi alone will pay ¥390 million.

“We are satisfied that the responsibility of the six was recognized and that we are able to recover company losses and finish pursuing their responsibility,” LDH said in a statement.

The company initially filed the damages suit against the seven seeking ¥3.5 billion in damages and added further claims to the suit, raising the amount to ¥36.3 billion.

The amount included a ¥31 billion settlement fee that LDH paid to Fuji TV’s parent company and compensation it paid to shareholders for sharp declines in its share price.

In criminal trials over the securities law violations, Horie is appealing a prison sentence, while guilty rulings have been finalized for Miyauchi and Kumagai.