Two former executives for Good Smile Company, the collectible manufacturer behind the popular Nendoroid and Figma brands, have entered a legal battle with their former employer for alleged discrimination and mistreatment, and are accusing the company of profiting through tax evasion and the distribution of anime materials and merchandise that sexualized minors.
As reported by Polygon, the legal dispute began when Good Smile Company sued two of its former vice presidents, Guy Brand and James Young-sik Kim, for breach of contract. According to the original law suit, while still employed at Good Smile Company, the two executives took advantage of the organization's relationship with Netflix to produce Stranger Things merchandise that competed with the company's own goods, which Good Smile believes was a violation of a non-compete and non-disclosure clauses contained within Brand and Kim's contracts. According to the original lawsuit, Brand and Kim were working to establish their own competing business, a company known as Imaginary People, while they were still employed with Good Smile.
Brand and Kim have now countered with a cross-complaint of their own, which alleges that the two executives were mistreated by a managing director at the company after they objected to the company's sale of figures and other merchandise that supposedly sexualized underage characters, which Kim and Brand's complaint describes as “oversexualized anime figures depicting minors,” and “teens and tweens in sexual positions”. The two also allege that Good Smile has knowingly evaded sales taxes in the United States for several years, and that company consequently owes a "significant amount" in back taxes. Brand and Kim also say that when the company was forces to issue a wave of pandemic-related lay-offs, they were ordered to give preference to Japanese-born employees and instead terminate workers who were of other races and ethnicities. The two former vice presidents say they were pressured to resign, while Good Smile Company claims they voluntarily ended their employment.
The case will eventually be handled in a California court.
Good Smile responded with the following statement:
“This case, as Good Smile’s Complaint makes clear, is about corporate misconduct by the defendants in improperly exploiting Good Smile’s assets and goodwill for their own benefit as described the lawsuit. The Defendants’ cross complaint, in contrast, is based on demonstrably, knowingly, and provably false and defamatory allegations. Good Smile does not, however, comment on ongoing litigation, and intends to argue its case in Court, not in the press. And it will prevail when the facts are presented in the Courtroom.”
Good Smile Company is based in Tokyo, Japan, but also operates an American branch that handles the import and distribution of their products in North America. The company has partnered with a wide variety of anime and video game producers to create figures and other merchandise for their properties. Its popular Nendoroid, Pop-Up Parade, and Figma lines feature characters from popular franchises such as My Hero Academia, Demon Slayer: Kimetsu No Yaiba, Super Mario, The Legend of Zelda, Batman, Iron-Man, KonoSuba, Hatsune Miku, Attack on Titan and much more.
Source: Polygon
