Risk of product defects and quality claims
First written in FY2016. 10 of 20 entries say "Restated". Latest entry: FY2025.
- FY2025MitigatedAnnual report
「Following the conclusion of a court settlement on 16 April 2025, the settlement amount payable to the company was recognized as “Litigation settlement expense,” with the corresponding liability recorded under other current liabilities.」
A court settlement was reached on 16 April 2025 in the damages lawsuit concerning special power cables supplied by Mitsubishi Electric Corporation, and a settlement amount of ¥4.8 billion was recognized. - FY2025-H1MitigatedAnnual report
「On 30 June 2023, the Company received a petition stating that, due to an expansion of the claim, the amount claimed in damages in the lawsuit would be changed to ¥8.2 billion. The business partner subsequently filed a petition dated 14 August 2024 to reduce the claim in this matter to ¥6.9 billion, stating that it had earned a profit from selling the raw materials used in the product, and the Company accepted this.」
The damages claim related to product quality was reduced from ¥8.2 billion to ¥6.9 billion. The Company continues to argue, based on its belief that the products supplied conformed to specifications, that it has no liability for damages. - FY2024RestatedAnnual report
「Under its group-wide “Fujikura Quality Policy,” the Group is working to strengthen its quality-control systems and raise awareness of quality compliance, while manufacturing various products in accordance with strict quality-control standards.」
Following the inappropriate quality-control practices, efforts to strengthen the quality-control system and raise awareness of quality compliance continue under the group-wide policy. - FY2024-Q2RestatedAnnual report
「A business partner filed a damages claim lawsuit against the Company seeking payment of ¥6.1 billion on the grounds that products supplied by the Company were defective, and the Company received the complaint in the case on 13 November 2020. On 30 June 2023, the Company received a petition stating that, due to an expansion of the claim, the amount claimed in damages in the lawsuit would be changed to ¥8.2 billion.」
The disclosure continues to state that the damages claim related to product quality was changed to ¥8.2 billion, and that the Company believes the products supplied conformed to specifications and has no payment obligation. - FY2024-Q1RestatedAnnual report
「A business partner filed a damages claim lawsuit against the Company seeking payment of ¥6.1 billion on the grounds that products supplied by the Company were defective, and the Company received the complaint in the case on 13 November 2020. On 30 June 2023, the Company received a petition stating that, due to an expansion of the claim, the amount claimed in damages in the lawsuit would be changed to ¥8.2 billion.」
The disclosure continues to state that the damages claim related to product quality was changed to ¥8.2 billion, and that the Company believes the products supplied conformed to specifications and has no payment obligation. - FY2023WorsenedAnnual report
「On 30 June 2023, the Company received a petition stating that, due to an expansion of the claim, the amount claimed in damages in the lawsuit would be changed to ¥8.2 billion.」
The disclosure stated that the damages claim related to the product quality issue had increased from ¥6.1 billion to ¥8.2 billion. The Company believes that the products supplied conformed to specifications and maintains that it has no payment obligation. - FY2023-Q3RestatedAnnual report
「A business partner filed a damages claim lawsuit against the Company seeking payment of ¥6.1 billion on the grounds that products supplied by the Company were defective, and the Company received the complaint in the case on 13 November 2020.」
The disclosure continues to cover the ¥6.1 billion damages claim lawsuit over alleged product defects and discussions regarding the ground-fault accident involving the power cable supplied in Malaysia. - FY2023-Q2RestatedAnnual report
「A ground-fault accident occurred in August 2021 involving a power cable supplied in Malaysia by a consolidated subsidiary of the Company. The Company had been investigating the cause with the customer to which the cable was supplied directly, but in May 2022 received a document from the end customer requesting a solution to the matter. The Company is currently discussing the investigation of the cause and future response with the customer and end customer, and at this point it is difficult to reasonably estimate the amount of the impact.」
Regarding the ground-fault accident involving the power cable supplied in Malaysia, discussions including the end customer and the investigation of the cause are continuing, and the amount of the impact remains difficult to reasonably estimate. - FY2023-Q1WorsenedAnnual report
「A ground-fault accident occurred in August 2021 involving a power cable supplied in Malaysia by a consolidated subsidiary of the Company. The Company had been investigating the cause with the customer to which the cable was supplied directly, but in May 2022 received a document from the end customer requesting a solution to the matter. The Company is currently discussing the investigation of the cause and future response with the customer and end customer, and at this point it is difficult to reasonably estimate the amount of the impact.」
Regarding the ground-fault accident involving the power cable supplied in Malaysia, the Company received a document from the end customer requesting a solution in May 2022, and discussions with the customer and end customer are continuing. The amount of the impact remains difficult to reasonably estimate. - FY2022WorsenedAnnual report
「A ground-fault accident occurred in August 2021 involving a power cable supplied in Malaysia by a consolidated subsidiary of the Company. …The Company is currently discussing the investigation of the cause and future response with the customer and end customer, and at this point it is difficult to reasonably estimate the amount of the impact.」
In addition to the existing inappropriate quality-control practices and ¥6.1 billion lawsuit, a ground-fault accident involving a power cable supplied in Malaysia occurred, and discussions with the customer and end customer were disclosed as a subsequent event. - FY2022-Q2RestatedAnnual report
「A business partner filed a damages claim lawsuit against the Company seeking payment of ¥6.1 billion on the grounds that products supplied by the Company were defective, and the Company received the complaint in the case on 13 November 2020.」
The ¥6.1 billion damages claim lawsuit over alleged product defects continues to be disclosed. The Company believes that the products supplied conformed to specifications and maintains that it has no payment obligation. - FY2022-Q1RestatedAnnual report
「A business partner filed a damages claim lawsuit against the Company seeking payment of ¥6.1 billion on the grounds that products supplied by the Company were defective, and the Company received the complaint in the case on 13 November 2020.」
The ¥6.1 billion damages claim lawsuit over alleged product defects continues to be disclosed. The Company believes that the products supplied conformed to specifications and has stated its intention to argue that it has no payment obligation. - FY2021-Q3WorsenedAnnual report
「A business partner filed a damages claim lawsuit against the Company seeking payment of ¥6.1 billion on the grounds that products supplied by the Company were defective, and the Company received the complaint in the case on 13 November 2020.」
In addition to the inappropriate quality-control practices, a new ¥6.1 billion damages claim lawsuit arose over alleged product defects. The Company stated that it believes the products supplied conformed to specifications and intends to argue that the claim has no basis. - FY2020-Q1RestatedAnnual report
「Depending on future developments, additional losses, including compensation costs payable to customers and others in connection with the Incident, may arise and affect the Company's consolidated results.」
Regarding the inappropriate quality-control practices, notification of the facts has been completed for customers, while some customers continue to verify performance, soundness and safety, leaving open the possibility of additional losses such as compensation costs. - FY2019WorsenedAnnual report
「Depending on future developments, additional losses, including compensation costs payable to customers and others in connection with the Incident, may arise and affect the Group's business results.」
In connection with the inappropriate quality-control practices, losses of more than ¥1.7 billion related to nonconforming products were recognized, and the disclosure stated that additional losses, including customer compensation, may arise. - FY2019-Q3WorsenedAnnual report
「As some of the loss impact of the Incident became clear, ¥1.7 billion was recognized as a loss related to nonconforming products in the third quarter. If events occur that make it possible to estimate the loss impact going forward, the estimated amount may be recognized additionally.」
A new ¥1.7 billion loss related to nonconforming products was recognized in connection with the inappropriate quality-control practices, and the possibility of additional losses was also disclosed. The financial impact of the quality risk is expanding. - FY2019-Q2MaterialisedAnnual report
「It was discovered that certain products of the Group were subject to inappropriate quality-control practices (hereinafter referred to as the “Incident”).」
The quality risk previously described as the possibility of product defects and quality claims materialized in actual incidents, including figures in testing and inspection documents that differed from measured values, failure to conduct agreed quality inspections, and changes to manufacturing methods without approval. The disclosure also cites 4 procedural deficiencies in JIS certification maintenance reviews and the temporary suspension of the JIS mark and ISO9001 certification. - FY2018RestatedAnnual report
「The Group manufactures various products in accordance with strict quality-control standards, but cannot guarantee that all products will be free from defects or that no quality claims will arise in the future.」
The risk disclosure continues to state that the possibility of quality claims cannot be ruled out. - FY2017RestatedAnnual report
「The Group manufactures various products in accordance with strict quality-control standards, but cannot guarantee that all products will be free from defects or that no quality claims will arise in the future.」
The risk disclosure continues to state that the possibility of quality claims cannot be ruled out. - FY2016First statedAnnual report
「The Group manufactures various products in accordance with strict quality-control standards, but cannot guarantee that all products will be free from defects or that no quality claims will arise in the future.」
Although quality controls and product liability insurance are in place, the company states that the possibility of a serious claim remains.