Product liability arising from unexpected defects
First written in FY2016. 3 of 7 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2026: 12 of 60 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「Our group has addressed the litigation based in part on the report of the third-party committee that investigated the incident. However, from the perspective of achieving an early resolution of the dispute, among other considerations, we decided to settle the matter and, in connection with the settlement, recorded the loss related to the litigation as an extraordinary loss.」
The company agreed to settle the litigation concerning defects in some sensors and proceeded with its response to the dispute. The provision for product inspection costs was zero at the end of the current fiscal year. - FY2023RestatedAnnual report
「Based on the inspection costs normally incurred at the end of the previous consolidated fiscal year and the current consolidated fiscal year, we recorded a provision of ¥80 million for product inspection costs.」
Continued to record the ¥80 million provision for product inspection costs in connection with the sensor issue for which the cause was considered difficult to identify. - FY2022Cause difficult to identify; provision continuedAnnual report
「The third-party committee's investigation report concluded that, although various causes of the decrease in sensitivity could be considered, it would be difficult to identify the cause. Our group believes that there is no reason whatsoever for it to bear the above costs and other expenses. However, in view of the occurrence of an event requiring inspection, we recorded a provision of ¥80 million for product inspection costs at the end of the previous consolidated fiscal year and the current consolidated fiscal year, based on the inspection costs normally incurred at those dates.」
The third-party committee's investigation report concluded that it would be difficult to identify the cause, and the company's position was presented alongside the claims for costs and the provision recorded. - FY2019-Q3RestatedAnnual report
「It was discovered that some sensors in industrial gas detection and alarm devices manufactured and sold by our consolidated subsidiary, バイオニクス機器株式会社 (Higashiyamato, Tokyo), were unable to maintain alarm accuracy within a short period after periodic inspections. A third-party committee has now been established and is determining the facts of the matter and investigating its causes. Our group will consider how to respond to the matter based on the results of the committee's investigation.」
The determination of the facts and investigation of the causes by the third-party committee, as well as consideration of the response based on its findings, remained ongoing with respect to the defects in some sensors. - FY2019-Q2RestatedAnnual report
「It was discovered that some sensors in industrial gas detection and alarm devices manufactured and sold by our consolidated subsidiary, バイオニクス機器株式会社 (Higashiyamato, Tokyo), were unable to maintain alarm accuracy within a short period after periodic inspections. A third-party committee has now been established and is determining the facts of the matter and investigating its causes.」
The company stated that the third-party committee's determination of the facts and investigation of the causes of the defects in some sensors were ongoing. The impact amount remained impossible to reasonably estimate. - FY2018MaterialisedAnnual report
「It was discovered that some sensors in industrial gas detection and alarm devices manufactured and sold by our consolidated subsidiary, バイオニクス機器株式会社 (Higashiyamato, Tokyo), were unable to maintain alarm sensitivity within a short period after periodic inspections.」
It was confirmed that some sensors in industrial gas detection and alarm devices were unable to maintain alarm sensitivity after periodic inspections. The company stated that the impact on its financial position and business results was unknown. - FY2016First statedAnnual report
「Although our group maintains product liability insurance, there is no guarantee that the insurance will cover all damages, and this could affect business performance.」
While describing the quality assurance framework and insurance coverage, the company indicated that insurance might not cover the full amount of damages arising from a defect.