Quality and liability risks arising from product and service defects
First written in FY2016. 3 of 9 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2026.
Hitachi moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 12 of 69 companies on the "Worse" side.
19 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「On 17 June 2026, a first-instance judgment was handed down against the 3 companies, namely the company that constructed the apartment building, the Japanese subsidiary and the subcontractor responsible for the piling work, ordering them to jointly pay damages and late-payment damages to the Japanese client. The total of the damages awarded and late-payment damages accrued through the date of the judgment was approximately ¥2.5 billion.」
A first-instance judgment was handed down in the lawsuit concerning defects in the piling work, awarding approximately ¥2.5 billion in damages and related amounts. Immediately before the filing date, the risk materialized as a specific legal determination. - FY2025AdvancedAnnual report
「The quality assurance function has been separated from the design and manufacturing functions within the business divisions. In addition, following past inappropriate quality-related conduct at a Group subsidiary, the quality assurance function has been organizationally separated from the business divisions as well, further strengthening its independence. We have also strengthened the reporting lines between the quality assurance functions responsible for the business divisions and the corporate Quality Assurance Division.」
The independence of the quality assurance function and its reporting lines to the corporate Quality Assurance Division have been strengthened. - FY2023-Q2Update to the litigation claim amountAnnual report
「Subsequently, we received a motion in July 2018 to change the amount claimed to approximately ¥51.0 billion, and a motion in September 2022 to change the amount claimed to approximately ¥50.5 billion.」
The amount claimed in damages related to defects in the apartment building's piling work was changed from approximately ¥51.0 billion to approximately ¥50.5 billion. The lawsuit itself is ongoing. - FY2019-Q2WorsenedAnnual report
「In connection with this matter, in April 2018 the company that constructed the apartment building filed a lawsuit against the Japanese subsidiary and the subcontractor responsible for the piling work, seeking approximately ¥49.6 billion in damages for losses they would incur if they were held liable for damages in the above lawsuit. In July 2018, the company received a motion to change the amount claimed to approximately ¥54.8 billion.」
The amount claimed in damages related to defects in the piling work was increased from approximately ¥49.6 billion to approximately ¥54.8 billion. - FY2019-Q1WorsenedAnnual report
「In November 2017, a Japanese subsidiary was sued by a Japanese client, which sought approximately ¥45.9 billion in damages from 3 companies, namely the company that constructed the apartment building, the Japanese subsidiary and the subcontractor responsible for the piling work, for costs and other expenses arising from concerns over partial defects in the piling work for the apartment building that the Japanese subsidiary had undertaken as the primary subcontractor. In July 2018, the subsidiary received a motion to change the amount claimed to approximately ¥51.0 billion.」
The amount claimed in damages over concerns regarding defects in the piling work was increased from approximately ¥45.9 billion to approximately ¥51.0 billion. - FY2018MaterialisedAnnual report
「In April 2018, in connection with this matter, the company that constructed the apartment building filed a lawsuit against the Japanese subsidiary and the subcontractor responsible for the piling work, seeking approximately ¥49.6 billion in damages for losses they would incur if they were held liable for damages in the above lawsuit.」
An additional lawsuit seeking approximately ¥49.6 billion in damages was filed in connection with the previously disclosed lawsuit concerning defects in piling work. - FY2018-Q3MaterialisedAnnual report
「In November 2017, a Japanese subsidiary was sued by a Japanese client, which sought approximately ¥45.9 billion in damages from 3 companies, including the Japanese subsidiary, for costs and other expenses arising from concerns over partial defects in the piling work for an apartment building.」
A lawsuit seeking approximately ¥45.9 billion in damages was filed over concerns regarding partial defects in piling work for an apartment building, giving concrete form to the risk related to product and service defects. - FY2017RestatedAnnual report
「If a defect or other issue arises in the Group's products or services, confidence in their quality may be adversely affected, and the Group may be held liable for damages arising from the defect or other issue.」
Continued disclosure of risks related to product and service defects, quality control and liability. - FY2016First statedAnnual report
「If a defect or other issue arises in the Group's products or services, confidence in their quality may be adversely affected, and the Group may be held liable for damages arising from the defect or other issue.」
Describes quality-control risks arising from the use of advanced, complex technologies and procurement from external suppliers.