Settlement of a PAGA lawsuit against a consolidated subsidiary in California, United States, and recognition of an extraordinary loss
Global-Dining Inc. of California（GDC）
GDC in California, United States; approximately 1,140 employees who worked at GDC during the applicable period
The plaintiffs claim that there were violations of labor laws and other matters, but the Company and GDC have not admitted the plaintiffs' claims or legal liability.
Related procedures
PAGA lawsuit, settlement and approval proceedings before a US court
US court
1 former GDC employee residing in California, United States (representative plaintiff)
Global-Dining Inc. of California（GDC）
Settlement payment of US$647,000 (¥101 million)
¥101 million recognized as an extraordinary loss related to the lawsuit
Third quarter of the fiscal year ending December 2026
Already reflected in the full-year consolidated earnings forecast announced on 12 February 2026; no revision to the earnings forecast
Subject to execution of the settlement agreement and formal approval proceedings before a US court, the Company plans to deposit the full settlement payment with a third-party administrator by 29 December 2026. The lawsuit will then be dismissed after the funds are distributed.
| Item | Details |
|---|---|
| Event name | Settlement of a PAGA lawsuit against a consolidated subsidiary in California, United States, and recognition of an extraordinary loss |
| Date of occurrence | Lawsuit filing date: 22 March 2024; memorandum execution date: 28 October 2026 |
| Date recognized / date notice received | Service date: 5 April 2024 |
| Subject Entity | Global-Dining Inc. of California（GDC） |
| Target Locations / Products | GDC in California, United States; approximately 1,140 employees who worked at GDC during the applicable period |
| Cause | The plaintiffs claim that there were violations of labor laws and other matters, but the Company and GDC have not admitted the plaintiffs' claims or legal liability. |
| Amount of Impact on Business Performance | ¥101 million recognized as an extraordinary loss related to the lawsuit |
| Accounting period in which recognized | Third quarter of the fiscal year ending December 2026 |
| Impact on Earnings Forecast | Already reflected in the full-year consolidated earnings forecast announced on 12 February 2026; no revision to the earnings forecast |
| Type of litigation or proceeding | PAGA lawsuit, settlement and approval proceedings before a US court |
| Court or authority | US court |
| Plaintiff | 1 former GDC employee residing in California, United States (representative plaintiff) |
| Defendant | Global-Dining Inc. of California（GDC） |
| Date of filing / date of action | Lawsuit filing date: 22 March 2024; memorandum execution date: 28 October 2026 |
| Claim amount / surcharge amount | Settlement payment of US$647,000 (¥101 million) |
| Outlook | Subject to execution of the settlement agreement and formal approval proceedings before a US court, the Company plans to deposit the full settlement payment with a third-party administrator by 29 December 2026. The lawsuit will then be dismissed after the funds are distributed. |
Items this document does not state (9)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.To avoid increased legal and other costs associated with a prolonged lawsuit and achieve an early resolution. The Company also considered the legal risks specific to PAGA and the financial burden if the litigation were to continue for an extended period.