Litigation Risk Associated with Past Inappropriate Financial Reporting

「The company recorded the ¥19.380 billion settlement amount arising from the settlement of the damages claim under "Other expenses."」

「As of the filing date of this quarterly securities report, all damages actions against the company concerning the past deferral of loss recognition had been resolved, and the material risk described in (6), "Risk related to the deferral of past loss recognition," in the annual securities report for the previous consolidated fiscal year had been eliminated.」

「For this damages action, a court-approved settlement was reached with the plaintiffs on 31 July 2018, and the lawsuit was concluded. Under the settlement, the company paid the plaintiffs a settlement amount of ¥19.028 billion during the six-month period ended 30 September 2018, which was recorded under "Other expenses." As of the filing date of this quarterly securities report, the total amount claimed in pending lawsuits was ¥177 million, and the material risk described in (6), "Risk related to the deferral of past loss recognition," in the annual securities report for the previous consolidated fiscal year has been eliminated.」

「As a result, as of the filing date of this quarterly securities report, the total amount claimed in pending lawsuits was ¥373 million, and the material risk described in (6), "Risk related to the deferral of past loss recognition," in the annual securities report for the previous consolidated fiscal year has been eliminated.」

「As of the filing date of this annual securities report, the total amount claimed in pending lawsuits was ¥28.287 billion, of which the principal lawsuits are as follows.」

「Shareholders and others have brought lawsuits against the company seeking damages as a result of the company's improper financial reporting. Depending on the future progress of these lawsuits and other factors, the company's consolidated results may be affected, including through the recognition of provisions, but the amount of the impact cannot reasonably be estimated at this time.」

「Shareholders and others have brought lawsuits against the company seeking damages as a result of the company's improper financial reporting. Depending on the future progress of these lawsuits and other factors, the company's consolidated results may be affected, including through the recognition of provisions, but the amount of the impact cannot reasonably be estimated at this time.」

「Shareholders and others have brought lawsuits against the company seeking damages as a result of the company's improper financial reporting. Depending on the future progress of these lawsuits and other factors, the company's consolidated results may be affected, including through the recognition of provisions, but the amount of the impact cannot reasonably be estimated at this time.」

「As of the filing date of this annual securities report, the total amount claimed in pending lawsuits was ¥29.080 billion, of which the principal lawsuits are as follows.」

「As of the filing date of this quarterly securities report, the total amount claimed in pending lawsuits was ¥29.407 billion. The following are the principal lawsuits involving material changes between the filing date of the annual securities report for the previous fiscal year and the filing date of this quarterly securities report. For this damages action, a court-approved settlement was reached with the plaintiffs on 26 December 2016, including the plaintiffs in lawsuits consolidated for joint trial (the same applies below), and the lawsuit was concluded. Under the settlement, the company paid the plaintiffs a settlement amount of ¥4 billion by the filing date of this quarterly securities report.」

「As of the filing date of this quarterly securities report, the total amount claimed in pending lawsuits was ¥38.998 billion. The following are the principal lawsuits involving material changes between the filing date of the annual securities report for the previous fiscal year and the filing date of this quarterly securities report.」

「On 27 March 2015, an out-of-court settlement was reached with investors and others, including the plaintiffs, regarding these lawsuits. The parties agreed to pay settlement amounts totaling up to ¥11 billion, including the amount under (c) below, of which ¥10.433 billion had been paid as of the filing date of this quarterly securities report. The remaining ¥567 million has been recorded as a provision for litigation losses under current liabilities.」

「As a result of our improper financial reporting, our shareholders and others have sought damages from, or brought lawsuits against, the company concerning the deferral, since around the 1990s, of losses related to investments in securities and other assets. The claims concern the use of funds paid as financial advisory fees in connection with the acquisition of Gyrus Group PLC, funds for the repurchase of preferred shares, and acquisition funds for 3 domestic companies (株式会社アルティス, NEWS CHEF株式会社 and 株式会社ヒューマラボ), through methods including the use of multiple funds, to eliminate unrealized losses on investment securities and other assets arising from the deferral of loss recognition. These matters may affect the operating results and financial position of the group. As of the date of filing this annual securities report, the total amount claimed in pending lawsuits was ¥76.974 billion.」