Intellectual Property, Product Liability, Environmental and Labor Litigation Risks
First written in FY2016. 11 of 30 entries say "Materialised", first in FY2017-Q3. Latest entry: 2026-06-25.
Life Intelligent Enterprise Holdings moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2024: 4 of 8 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2025MaterialisedAnnual report
「The company determined that the acts of its former representative director, Yasuhiro Fukumura, in increasing and receiving his own executive compensation without approval from the board of directors or shareholders’ meeting and withdrawing company funds into his personal account without authorization constituted tortious acts, and filed a damages lawsuit. On 25 April 2025, the Tokyo District Court issued a judgment fully upholding the company’s primary claims.」
In addition to general litigation risks, the company filed a damages lawsuit against its former representative director, and the Tokyo District Court subsequently fully upheld the company’s primary claims. - FY2025-H1New Lawsuit Filed and Existing Litigation ConcludedAnnual report
「Although the company and Witz appealed to the Supreme Court and petitioned for acceptance of the appeal, the Supreme Court decided on 6 September 2023 to dismiss the appeal and not accept the case as an appeal, concluding that litigation. In addition, Sugiura Takanobu, who operated the Tokyo LETS support school, filed a damages lawsuit on 9 July 2024. The amount claimed is ¥41.471 million.」
The original Witz Aoyama Gakuen High School litigation ended with the Supreme Court’s decision, while new damages lawsuits were filed by Kawai Seminar and Sugiura Takanobu, the latter seeking ¥41.471 million. - FY2024-Q3MaterialisedAnnual report
「After the judgment in the earlier damages lawsuit, Kawai Seminar Co., Ltd., which operated support schools for Witz Aoyama Gakuen High School through 31 March 2017, filed a damages lawsuit against the company, Witz and the company’s representative director Yasuhiro Fukumura on 15 November 2023. The claim concerns the need to repeat experiential school sessions and suspend new student recruitment, which Kawai Seminar alleges constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The amount claimed is ¥145.462 million.」
In addition to the existing education-business litigation, Kawai Seminar filed a damages lawsuit against the company, Witz and the representative director on 15 November 2023, seeking ¥145.462 million. - FY2024-Q1RestatedAnnual report
「The company and Witz, disagreeing with the judgment, filed an appeal and a petition for acceptance of appeal with the Supreme Court.」
The education-business litigation continued after the Osaka High Court judgment through an appeal and petition for acceptance of appeal with the Supreme Court. - FY2023-Q3Representative Director to Bear Full Damages; Provision Reversed and Appeal FiledAnnual report
「Following the judgment, the company and Witz were to jointly pay two-thirds of the total damages to the plaintiffs, while the company’s representative director and president, Yasuhiro Fukumura, was to pay one-third. However, after Yasuhiro Fukumura expressed an intention to personally bear the full amount of damages owed to the plaintiffs, including the portion to be borne by the company and Witz, the company reversed in full the litigation loss provision of ¥181.498 million recognized at the end of the second quarter of the fiscal year ending March 2023 and recorded the reversal as an extraordinary gain. The company and Witz, disagreeing with the judgment, filed an appeal and a petition for acceptance of appeal with the Supreme Court.」
Following the Osaka High Court judgment, the representative director expressed an intention to personally bear all damages, including the company’s and subsidiary’s portions. The company reversed the ¥181.498 million litigation loss provision in full and recorded an extraordinary gain. The company and Witz filed an appeal and petition for acceptance of appeal with the Supreme Court, so the litigation continued. - FY2023-Q2MaterialisedAnnual report
「On 28 October 2022, the Osaka High Court ruled that the defendants, the company, Witz and the company’s representative director, must jointly pay ¥211.089 million plus statutory interest to the plaintiffs, Masanori Suda and the other plaintiffs. The company is considering its response.」
The Osaka High Court ruled that the company, Witz and the representative director must jointly pay ¥211.089 million plus statutory interest in the ongoing education-business litigation. The company is considering its response. - FY2023-Q1Recognition of Litigation-Related Loss and Settlement ProceedsAnnual report
「Settlement proceeds received – 50,000 Total extraordinary gains – 50,000 Litigation-related loss – 5,000」
While continuing to disclose the litigation and appeal, the company recorded settlement proceeds of ¥50 million and litigation-related loss of ¥5 million during the first quarter. - FY2022-Q3Increase in Litigation Loss Provision and Recognition of Litigation-Related LossAnnual report
「This was mainly because accrued expenses increased by ¥84 million and the litigation loss provision increased by ¥184 million, while accrued consumption taxes and other liabilities decreased by ¥53 million.」
In connection with the ongoing litigation, the litigation loss provision increased by ¥184 million. During the third quarter, the company recorded litigation-related loss of ¥17.794 million and an expense of ¥184.426 million for the litigation loss provision. - FY2022-Q2Updated Litigation Claims and Recognition of Litigation Loss ProvisionsAnnual report
「The company was sued by 10 plaintiffs including Masanori Suda in connection with experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz. The plaintiffs alleged that the need to repeat the sessions and suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed were ¥421.081 million. In connection with the lawsuit, Witz had filed a counterclaim seeking ¥283.356 million. The Osaka District Court ruled on 16 July 2021 that Witz must pay ¥147.266 million, and Witz appealed part of the judgment to the Osaka High Court on 3 August 2021.」
The litigation continued after the district court judgment through the appeal. The plaintiffs’ claim was updated to ¥421.081 million and the counterclaim to ¥283.356 million. The company also recorded a litigation loss provision of ¥182.570 million and litigation-related loss of ¥10.522 million. - FY2022-Q1District Court Judgment and AppealAnnual report
「In the above series of lawsuits, the Osaka District Court ruled on 16 July 2021 that Witz must pay ¥147.266 million to Masanori Suda and the other plaintiffs. Witz, the company’s subsidiary, appealed part of the judgment to the Osaka High Court on 3 August 2021 because it disagreed with that part of the ruling.」
The Osaka District Court issued a payment judgment in the education-business litigation, and Witz appealed part of it to the Osaka High Court. - FY2021RestatedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥501.24 million. In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs, seeking ¥284.10 million.」
The education-business damages claim and counterclaim continue, with no change in the amounts claimed by either side. - FY2021-Q3RestatedAnnual report
「On 10 November 2016, the company was sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥501.24 million. In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs on 30 March 2017, seeking ¥284.10 million.」
The education-business damages claim and counterclaim continue, with the plaintiffs’ claim of ¥501.24 million and the counterclaim of ¥284.10 million unchanged. - FY2020RestatedAnnual report
「As the group conducts its business, it may become subject to various lawsuits involving intellectual property rights, product liability, environmental matters and employment matters. Material litigation could adversely affect the group’s operating results and financial position.」
The company continues to disclose litigation risks involving intellectual property, product liability, environmental matters and employment matters. - FY2020-Q3RestatedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥501.24 million. In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs, seeking ¥284.10 million.」
The education-business damages claim and counterclaim continue, with no change in the amounts claimed. - FY2020-Q1MaterialisedAnnual report
「Litigation-related loss – 6,695」
While the education-business litigation continued, the company recorded a litigation-related loss of ¥6.695 million as an extraordinary loss during the first quarter. - FY2019-Q2Reduction in Plaintiffs’ Damages ClaimAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥501.24 million.」
The litigation continues, but the plaintiffs’ damages claim decreased from the previously disclosed ¥769.61 million to ¥501.24 million. The counterclaim is ¥284.10 million. - FY2019-Q1Reduction in Counterclaim AmountAnnual report
「In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs, seeking ¥284.10 million.」
The education-business litigation continues, but Witz’s counterclaim decreased from the previously disclosed ¥608 million to ¥284.10 million. The plaintiffs’ damages claim of ¥769.61 million remains unchanged. - FY2018RestatedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥769.61 million.」
The company continues to disclose the education-business damages claim and Witz’s counterclaim. - FY2018-Q3RestatedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥769.61 million. In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs, seeking ¥608 million.」
The company continues to disclose the education-business damages claim and counterclaim, with no change in the amounts claimed. - FY2018-Q2RestatedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥769.61 million. In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs, seeking ¥608 million.」
The company continues to disclose the education-business damages claim and counterclaim, with no change in the amounts claimed. - FY2018-Q1RestatedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent. The damages claimed are ¥769.61 million. In connection with the lawsuit against the company, Witz, the company’s subsidiary, filed a counterclaim against Masanori Suda and the other plaintiffs, seeking ¥608 million.」
The company continues to disclose the education-business damages claim and counterclaim, specifying a damages claim of ¥769.61 million and a counterclaim of ¥608 million. - FY2017-Q3MaterialisedAnnual report
「The company has been sued by 10 plaintiffs including Masanori Suda. They allege that the requirement to repeat experiential school sessions held at Witz Aoyama Gakuen High School, operated by the company’s subsidiary Witz, and the resulting need to suspend new student recruitment constituted a breach of the company’s duty to establish an internal control system, a breach of duty and a tort by the company as Witz’s parent.」
In addition to general litigation risks, an actual damages claim was filed in connection with the education business. - FY2016First statedAnnual report
「As the group conducts its business, it may become subject to various lawsuits involving intellectual property rights, product liability, environmental matters and employment matters. Material litigation could adversely affect the group’s operating results and financial position.」
The company identifies the risk of litigation in multiple legal areas and the potential impact of material litigation on performance and financial position.