Risk of Litigation and Other Legal Proceedings
First written in FY2017. 2 of 5 entries say "Worsened", first in FY2021. Latest entry: FY2025.
Denka moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
23 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The US Department of Justice withdrew this lawsuit on 7 March 2025, bringing the matter to a close.」
The US Department of Justice’s lawsuit concerning DPE’s chloroprene monomer emissions was withdrawn on 7 March 2025 and has been concluded. Meanwhile, 20 lawsuits brought by local residents and regulatory-related petitions remain pending. - FY2023WorsenedAnnual report
「Since 2018, Denka Performance Elastomer LLC, our US subsidiary (70% owned by us; hereinafter “DPE”), together with US-based DuPont and its affiliates (collectively, “DuPont”), has been subject to multiple lawsuits in the 40th Judicial District Court for the Parish of St. John the Baptist, Louisiana. A total of 20 lawsuits were pending as of 31 March 2023.」
DPE-related lawsuits increased from 19 involving a cumulative total of 7,218 plaintiffs to 20 involving 7,308 plaintiffs. In addition, the US Department of Justice filed a lawsuit and sought injunctive relief requiring measures to eliminate hazards arising from emissions. - FY2021WorsenedAnnual report
「Since 2018, our US subsidiary Denka Performance Elastomer LLC (in which the Company holds a 70% interest; hereinafter, “DPE”), together with US-based DuPont and its affiliates (collectively, “DuPont”), has been named as a defendant in multiple lawsuits (19 cases) pending before the 40th Judicial District Court for the Parish of St. John the Baptist, Louisiana, USA. In these lawsuits, the plaintiffs (7,218 in total) are seeking damages from DPE and DuPont, not exceeding $50,000 per plaintiff, alleging that they suffered physical, property and emotional harm from chloroprene monomer emissions from a chloroprene rubber manufacturing plant in Louisiana, USA.」
There are 19 chloroprene monomer-related lawsuits pending against DPE, involving a cumulative total of 7,218 plaintiffs. Claims for damages of no more than US$50,000 per plaintiff have been disclosed. - FY2021-Q3MaterialisedAnnual report
「Our Singapore subsidiaries, Denka Singapore Private Limited (DSPL) and Denka Advantech Private Limited (DAPL), had been sued by Seraya Energy Pte Ltd for damages arising from the early termination of electricity supply agreements. On 15 December 2020, the Supreme Court of Singapore ordered DSPL and DAPL to pay damages, interest and other amounts.」
The Supreme Court issued a judgment in litigation concerning electricity supply agreements involving the Singapore subsidiaries, and ¥2.997 billion in litigation-related losses was recorded as an extraordinary loss. Litigation risk materialized as an actual loss. - FY2017First statedAnnual report
「As the Group conducts a broad range of business activities, it may become subject to litigation or other legal proceedings. The filing of material litigation or similar proceedings could adversely affect our group's operating performance and financial position.」
The risk of litigation and legal proceedings associated with broad business activities in Japan and overseas is described.