Like most lies, there's a fragment of truth in that statement. Some of their products are manufactured in Japan while some are made in other Asian countries. There are a few models over the years that have had some Q/C problems, but it's hardly epidemic. I've owned & used a lot of Denon gear over the years with very few problems. I did once have a piece break (not even its fault) and the service was very fast & thorough.
I would recommend, though, that any expensive item be purchased from an authorized dealer or at least one with a very good rep for providing their own service. Gear of any brand can fail, as anything man made. In the event of a problem, it's a good feeling to know you're covered.