According to the lawsuit, Tanaka was 15 when he was sexually assaulted by Kitagawa in a Las Vegas hotel room in 1997. Iida was 14 when he was allegedly sexually assaulted in 2002. The two companies that are defendants in the lawsuit argued that they should not be held accountable to provide compensation. A Smile-Up official said, "We believe a U.S. court would not have jurisdiction in such matters because the plaintiffs lived in Japan at that time. We will consult with our lawyers in the United States to decide how to proceed." Noting that there is no capital relationship with Smile-Up and that the two companies are separate, independent entities, a Starto Entertainment official said, "There is no reason for our company to be subject to a lawsuit. It is very regrettable that such a step was taken without an adequate understanding of the facts of how our company was established." But Kazuko Ito, a lawyer and expert on sexual violence lawsuits in the United States, said that filling the case in Nevada could have a major impact. She explained that the U.S. court could provide a more transparent process and establish clear compensation figures, compared to the closed, secretive nature of the decisions made by Smile-Up.