A Lawsuit Filed Against Arai Inc Is Filing Under a Different Cause

In 2021, the Arai Inc. was sold to a private investor by its founder, Taro Arai. Taro Arai left his position as a professor of business at Tokyo’s Keio University, to help start the company. However, instead of using his skills in order to grow the company into an international leader in medical equipment, he rather closed it and began a period of “despair and confusion.” The company itself was sold to an investor for a meager sum. Arai then went on a mission to “re reinvent” the company through a series of seminars and classes, in an effort to” reinvent himself” and thus, start a new life.

ARA Inc Lawsuit

While on this “re reinventing” mission, Arai began to have some serious problems with his health and was diagnosed with cancer. This prompted him to file a wrongful death lawsuit against his former employer, as well as Taro Arai himself.

The lawsuit alleged that Arai’s death was caused by the negligence of both parties. Taro Arai died in custody while in Japan on a business trip. The case was settled out of court.

The Arai family had a difficult time dealing with the situation, as their attorney repeatedly tried to get the case dismissed.

Finally, the case was ruled in favor of the plaintiffs. A week after the ruling, the Japanese government stepped in and purchased the Arai Inc.

For a short time, the company was closed down. An investigation later found that the reason for the sale of the company was because the founder, Taro Arai, wished to retire from the industry. However, the family was not happy with this turn of events.

The lawsuit filed by the attorneys was intended to hold Taro Arai responsible for his actions and to obtain compensation for the family’s loss.

It was also hoped that the lawsuit would make employers more accountable for the care they provide to their employees, as well as the supervision they are given by third parties. As expected, the lawsuit was a long and difficult one. Several motions to dismiss were made by the defendants.

On appeal, the Second Circuit Court of Appeals affirmed the decision.

Writing for a divided panel, Judge William Traxler agreed with the trial court that the evidence showed that Arai was aware of the liability of his acts of omission and that he did nothing about it. Further, the evidence also showed that he had a financial interest in keeping the company open.

Finally, there was no evidence that any injury came as a result of his negligence. Judge Traxler held that there was a likelihood that a jury might conclude that Arai intentionally withheld relevant and material information, which likely would have a severe financial impact on the company.

This is just one of the many lawsuits filed against Arai by former employees. If you or someone you know has been a victim of employer fraud or if you believe that you are a victim of such conduct, you should contact a qualified attorney. Being subjected to employer behavior may have a devastating effect on an individual’s life and livelihood. If you have been a victim or believe that you have been a victim of this type of activity, contact an attorney today.

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