Lawsuits for damages arising from failure to meet equipment performance requirements
First written in FY2024. 3 of 4 entries say "Materialised", first in FY2024. Latest entry: FY2026.
Seika moved to the "Worse" side of this theme in 2024, 1 year after the typical company in this theme (2023).
The whole theme swung hardest in 2025: 12 of 70 companies on the "Worse" side.
21 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「A settlement was reached, with ¥120 million paid as the settlement amount as of 13 March 2026. …The company recognized ¥107 million as the settlement amount under extraordinary loss.」
The lawsuit arising from the failure to meet equipment performance requirements was settled after an appeal through the payment of a ¥120 million settlement, and ¥107 million, excluding the amount equivalent to the advance payment, was recorded as an extraordinary loss. - 2026-05-13MitigatedEarningsSuggests it is closing out
「Accordingly, we reversed the ¥502 million provision for litigation-related losses recorded during the nine-month consolidated cumulative period. As part of the settlement amount claimed included an amount equivalent to an advance payment received from the counterparty in a prior fiscal year, we recorded ¥107 million, excluding that amount, as an extraordinary loss.」
The litigation concerning failure to meet equipment performance requirements moved from a judgment and appeal proceeding to resolution through payment of a settlement following the settlement reached on 13 March 2026. - FY2026-H1MaterialisedAnnual report
「Based on the judgment, the company recognized ¥502 million, comprising the damages claim and related late-payment damages, as a provision for litigation-related losses under non-current liabilities. Because part of the damages claim represented an amount equivalent to an advance payment received from the counterparty in a prior fiscal year, the company recognized ¥489 million, excluding that amount, as an addition to the provision for litigation-related losses under extraordinary loss.」
In the lawsuit concerning the equipment’s failure to meet performance requirements, the company was ordered to pay ¥454 million plus late-payment damages, and recognized a ¥502 million provision and ¥489 million in extraordinary loss. The company has appealed. - FY2024MaterialisedAnnual report
「A business partner filed a damages lawsuit against us seeking ¥479 million in restoration costs related to contract termination on the grounds that the equipment failed to meet performance requirements, and we received the complaint in the lawsuit on 25 March 2024.」
The ¥479 million damages lawsuit based on the equipment’s failure to meet performance requirements was filed, and the company received the complaint on 25 March 2024. No provision was recognized because the future liability could not be reasonably estimated.