Komori
Occurring Fact1801TAISEI CORPORATIONConstruction and Materials

Withdrawal of the Final Appeal and Other Proceedings in the Action Seeking Revocation of the Business Suspension Order and Cease-and-Desist Order under the Construction Business Act

Following the Supreme Court's final conviction, the company received an order from the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism suspending its business in private civil engineering works nationwide for 120 days. The company also decided to withdraw its appeal and petition for acceptance of appeal seeking rescission of the Japan Fair Trade Commission's cease-and-desist order.

Worth reading
66In focus
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Direction
Deterioration
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Scale
120
days
Wording
Definitive
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Withdrawal of appeals and other proceedings relating to the order suspending operations under the Construction Business Act and the action to rescind the cease-and-desist order

Subject Entity

TAISEI CORPORATION

Target Locations / Products

Private civil engineering works within the company's nationwide civil engineering business

Occurrence23 October 2026 (the date on which the order suspending operations was issued and the company decided to withdraw its appeal and petition for acceptance of appeal)
Same day
Awareness or receipt of notice23 October 2026 (date the business suspension order was received from the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism)
Same day
Litigation / administrative actionDate of order suspending operations: 23 October 2026. The appeal and petition for acceptance of appeal were disclosed on 27 May 2025.
This disclosure10/23/2026
Cause

The guilty verdict became final in the case involving violations of the Antimonopoly Act concerning construction of new terminal stations using the cut-and-cover method at Shinagawa Station and Nagoya Station for the Chuo Shinkansen maglev line

Related procedures

Type

Order suspending operations under the Construction Business Act, and withdrawal of the appeal and petition for acceptance of appeal relating to the action to rescind the cease-and-desist order

Court or authority

Supreme Court, Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism, Japan Fair Trade Commission

Plaintiff

TAISEI CORPORATION (action to rescind the cease-and-desist order)

Defendant

Not disclosed

Company response

Suspended operations

Private civil engineering works within the nationwide civil engineering business

Scheduled resumption date

7 March 2027 (the day after the suspension period ends)

Measures to prevent recurrence

Tightening of rules governing contact with competitors; mandatory advance notification through a dedicated system for participating in meetings with competitors and post-meeting reports; in principle, prohibition of participation in meetings with competitors without following the above procedures; monitoring of emails exchanged between sales personnel and competitors; prohibition of sending or receiving emails with competitors using email addresses not designated by the company; procedures for verifying the propriety of bidding activities; establishment of a voluntary reporting system (internal leniency); and retraining on compliance with the Antimonopoly Act

Outlook

The company will further reinforce its existing measures to prevent recurrence and continue working to ensure compliance with laws and regulations and improve the effectiveness of its compliance framework.

Event that occurred
ItemDetails
Event nameWithdrawal of appeals and other proceedings relating to the order suspending operations under the Construction Business Act and the action to rescind the cease-and-desist order
Date of occurrence23 October 2026 (the date on which the order suspending operations was issued and the company decided to withdraw its appeal and petition for acceptance of appeal)
Date recognized / date notice received23 October 2026 (date the business suspension order was received from the Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism)
Subject EntityTAISEI CORPORATION
Target Locations / ProductsPrivate civil engineering works within the company's nationwide civil engineering business
CauseThe guilty verdict became final in the case involving violations of the Antimonopoly Act concerning construction of new terminal stations using the cut-and-cover method at Shinagawa Station and Nagoya Station for the Chuo Shinkansen maglev line
Type of litigation or proceedingOrder suspending operations under the Construction Business Act, and withdrawal of the appeal and petition for acceptance of appeal relating to the action to rescind the cease-and-desist order
Court or authoritySupreme Court, Kanto Regional Development Bureau of the Ministry of Land, Infrastructure, Transport and Tourism, Japan Fair Trade Commission
PlaintiffTAISEI CORPORATION (action to rescind the cease-and-desist order)
Date of filing / date of actionDate of order suspending operations: 23 October 2026. The appeal and petition for acceptance of appeal were disclosed on 27 May 2025.
Suspended operationsPrivate civil engineering works within the nationwide civil engineering business
Scheduled resumption date7 March 2027 (the day after the suspension period ends)
Measures to prevent recurrenceTightening of rules governing contact with competitors; mandatory advance notification through a dedicated system for participating in meetings with competitors and post-meeting reports; in principle, prohibition of participation in meetings with competitors without following the above procedures; monitoring of emails exchanged between sales personnel and competitors; prohibition of sending or receiving emails with competitors using email addresses not designated by the company; procedures for verifying the propriety of bidding activities; establishment of a voluntary reporting system (internal leniency); and retraining on compliance with the Antimonopoly Act
OutlookThe company will further reinforce its existing measures to prevent recurrence and continue working to ensure compliance with laws and regulations and improve the effectiveness of its compliance framework.
Items this document does not state (11)
Amount of Impact on Business PerformanceAccounting period in which recognizedImpact on Earnings ForecastDefendantClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionInvestigation structureDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Because, in the case involving violations of the Antimonopoly Act concerning construction of new terminal stations for the Chuo Shinkansen maglev line, the Supreme Court dismissed the company's appeal on 14 September 2026, making the guilty verdict final.

How to read this page

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Withdrawal of the Final Appeal and Other Proceedings in the Action Seeking Revocation of the Business Suspension Order and Cease-and-Desist Order under the Construction Business Act | TAISEI CORPORATION (1801) timely disclosure | Komori