The Japanese government has pulled advertisements from Fuji Television following sexual assault allegations against its high-profile TV host, Masahiro Nakai. This move comes as the broadcasting giant faces mounting criticism and financial losses.

Government spokesperson Yoshimasa Hayashi confirmed on Thursday that all government ads on Fuji TV have been suspended, citing concerns over the situation. "Considering the circumstances surrounding Fuji Television, we have decided to suspend ad placements for the time being," Hayashi stated. Four advertisements—two currently airing and two scheduled—have been withdrawn.

The scandal erupted last month after a leading tabloid reported that Nakai, a former member of the popular boy band SMAP, engaged in a sexual act without a woman’s consent in 2023. Reports suggest he paid the woman 90 million yen ($570,000) as part of a non-disclosure agreement.

Fuji Television has faced intense backlash for its handling of the allegations, particularly after admitting it had prior knowledge of the claims in 2023 but continued to feature Nakai on its programs. The controversy led to the resignation of two senior Fuji executives on Monday, who stepped down for "failing to provide adequate care" and displaying "a lack of awareness of human rights."

The fallout has also impacted Fuji Media's financial outlook. On Thursday, the company slashed its full-year net income forecast from 29.0 billion yen ($187.5 million) to 9.8 billion yen ($63.4 million).

Nakai, 52, responded to the allegations by stating that some reports were "different from the facts." However, last week, he announced his retirement from the entertainment industry.

The case has drawn broader scrutiny of Japan's television industry, with reports surfacing of social gatherings between celebrities and young women. In response, other major networks, including Nippon TV, have launched internal investigations into similar incidents.