Fuji Television Network Inc said Wednesday it has launched an investigation into allegations of its involvement in a sexual misconduct scandal involving Japanese TV host Masahiro Nakai, best known as a member of the now-defunct pop group SMAP, and a woman.

"An investigation involving external lawyers to verify the facts has been under way since last year, and we will take appropriate action based on the findings," the TV broadcaster said in a statement, following media reports last month that its employee had arranged the meal where Nakai met the woman.

According to the Shukan Bunshun weekly magazine, what was planned as a dinner in June 2023 with Fuji TV employees ended up with only Nakai and the woman present, leading to nonconsensual sexual activity and a 90 million yen out-of-court settlement.

The magazine also criticized how the network handled the situation with the woman.

The TV broadcaster has denied any involvement in the incident, stating that the employee in question neither arranged the meal nor was aware it was taking place.

On Tuesday, U.S. fund Dalton Investments LLC, a shareholder of the broadcaster's parent company, Fuji Media Holdings Inc, issued a letter via its affiliate Rising Sun Management Ltd, requesting the establishment of a third-party committee to investigate the incident.

"The uproar created by Mr Masahiro Nakai...reflects not only a problem in the entertainment industry generally, but, specifically, it exposes serious flaws in your corporate governance," the letter said.

Fuji Media Holdings declined to comment, saying it "does not disclose details on individual investors."

Major TV networks have suspended programs hosted by Nakai or edited him out of scenes following the allegations, including Nippon Television Network Corp, which said Wednesday he would step down as host of a variety program following a "comprehensive" review of the situation.

SMAP was formed in 1988 and gained popularity in Japan and across Asia before disbanding in 2016.