The chairman and president of Fuji TV, one of Japan's largest networks, have stepped down following a sexual misconduct accusation against a prominent TV host.
Numerous companies have withdrawn their ads from the network, which faced criticism for attempting to conceal the scandal.
The Japanese government has urged Fuji TV to rebuild trust with viewers and sponsors.
During a press conference on Monday, Fuji TV chairman Shuji Kano and president Koichi Minato bowed as they announced their resignations, which followed an emergency board meeting.
They apologized to viewers and stakeholders for the disruption and distress caused by a scandal that has shaken Japan's entertainment sector.
"I deeply feel the weight of my responsibility in eroding trust in the media," expressed Mr. Minato. "In hindsight, I recognize our response fell short."
Previously, Mr. Minato had acknowledged that the company was informed of the allegation against Nakai shortly after the incident but chose not to disclose it then, citing concern for the woman's well-being and privacy.
Rumors emerged that Nakai had paid the woman over half a million dollars, and further allegations surfaced involving a Fuji TV employee helping to organize the event.
Nakai, a former member of the boy band SMAP and a well-known figure who hosted several Fuji TV programs, denied using violence against the woman and stated that he had reached a settlement with her to resolve the issue.
However, public outrage persisted.
Major car manufacturers Nissan and Toyota were among those companies that halted advertising on Fuji TV.
In an open letter, investment firm Rising Sun Management, the majority shareholder of Fuji TV's parent company, criticized the scandal for revealing significant flaws in corporate governance.
Fuji TV has since established an independent committee to investigate the scandal.
Incoming president Kenji Shimizu, who will replace Mr. Minato, pledged to "never tolerate human rights violations" and committed to preventing similar incidents by starting anew.
Recently, the network suspended a weekly show hosted by Nakai, and other major networks have also severed ties with the presenter.
Additionally, other TV networks have launched their own inquiries following reports that similar dinner parties involving celebrities are common in the industry.