Risks to corporate credibility and cost burden from prolonged problems and complaints and litigation
First written in FY2018. 4 of 6 entries say "Materialised", first in FY2020-Q3. Latest entry: FY2021-Q3.
The whole theme swung hardest in 2025: 2 of 17 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2021-Q3MitigatedAnnual report
「The provision for litigation losses decreased by ¥1,161 million following resolution of the litigation.」
In the litigation with 株式会社日立ソリューションズ, the Supreme Court decided not to accept the final appeal, and the appellate judgment became final. The provision for litigation losses decreased, and the company recognized ¥26 million as an extraordinary loss following the judgment becoming final. - FY2021-Q2MaterialisedAnnual report
「On 20 October 2020, the Supreme Court decided not to accept the case for final appeal. As a result, the appellate judgment ordering 株式会社ＴＯＫＡＩコミュニケーションズ to pay 株式会社日立ソリューションズ ¥766 million in damages, plus interest for late payment, became final. In preparation for the 16 January 2020 Tokyo High Court appellate judgment becoming final, the company had recognized a ¥1,184 million provision for litigation losses.」
The Supreme Court decided not to accept the case for final appeal, and the judgment ordering payment of ¥766 million in damages and other amounts became final. The provision for litigation losses was ¥1,184 million. - FY2021-Q1MaterialisedAnnual report
「Provision for litigation losses 11」
The company recognized ¥11 million as a provision for litigation losses in the first quarter, and continued to recognize litigation-related losses. - FY2020MaterialisedAnnual report
「Dissatisfied with the judgment, 株式会社ＴＯＫＡＩコミュニケーションズ filed a final appeal with the Supreme Court and petitioned for acceptance of the appeal on 3 February 2020. In preparation for the judgment becoming final, it recognized ¥1,161 million as a provision for litigation losses under extraordinary losses.」
Following the appellate judgment in the litigation, the company recognized a ¥1,161 million provision for litigation losses against damages. - FY2020-Q3MaterialisedAnnual report
「On 16 January 2020, the Tokyo High Court issued an appellate judgment ordering 株式会社ＴＯＫＡＩコミュニケーションズ to pay 株式会社日立ソリューションズ ¥766 million in damages, plus interest for late payment. 株式会社ＴＯＫＡＩコミュニケーションズ, dissatisfied with the judgment, filed a final appeal with the Supreme Court and petitioned for acceptance of the appeal on 3 February 2020. In preparation for the judgment becoming final, it recognized ¥1,150 million as a provision for litigation losses under extraordinary losses.」
Following the appellate judgment in the litigation, the company recognized ¥1,150 million as a provision for litigation losses against ¥766 million in damages. It also filed a final appeal and petitioned for acceptance of the appeal. - FY2018First statedAnnual report
「However, if disputes, claims or other issues become prolonged or develop into social issues, or if litigation is initiated, the group’s operating results and financial condition may be affected by damage to its social credibility due to adverse publicity and the burden of costs related to resolution, including damages.」
The company described measures to prevent disputes and claims, contract reviews by specialist departments and recurrence-prevention measures after incidents, and explicitly identified the impact of prolonged disputes, their development into social issues and the initiation of litigation as new risk items.