Decision and Details
Filing of a lawsuit seeking damages from the Company's former managing director
The Company determined that it should seek damages for investigation costs, costs of holding the continuation meeting of the 66th annual general meeting of shareholders, additional costs for preparing the financial statements, and attorneys' fees related to this lawsuit, as these costs would not have been incurred without the former managing director's breach of the duty of care.
The Company currently considers the impact of this lawsuit on its financial results to be minor.
| Item | Details |
|---|---|
| Matter Covered | Filing of a lawsuit seeking damages from the Company's former managing director |
| Decision Date | 30 July 2026 (date lawsuit was filed) |
| Implementation Date | 30 July 2026 (lawsuit filed) |
| Amount | Amount claimed as damages: ¥404,381,919. In addition, default interest from the day following the date on which the complaint is served until payment is made. |
| Impact on Business Performance | The Company currently considers the impact of this lawsuit on its financial results to be minor. |
| Reason | The Company determined that it should seek damages for investigation costs, costs of holding the continuation meeting of the 66th annual general meeting of shareholders, additional costs for preparing the financial statements, and attorneys' fees related to this lawsuit, as these costs would not have been incurred without the former managing director's breach of the duty of care. |
| Governing Rule | Article 423, Paragraph 1 of the Companies Act |
| Related previous disclosures | The investigation report of the Special Investigation Committee regarding the incident involving inappropriate receipt of compensation by the Company's former managing director, disclosed on 29 May 2026, and the recurrence prevention measures and strengthening of group governance disclosed on 29 May 2026 |
| Future plans | The Company will make a disclosure if there is any change in the status of the lawsuit. Regarding pursuit of liability for damages incurred by the U.S. subsidiary, the Company will continue to consider the matter, including the selection of appropriate legal procedures, and will provide an update as necessary. |
Items this document does not state (3)
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.The Company determined that costs were incurred as a result of the former managing director's breach of the duty of care, including investigation costs, costs of holding a continuation meeting of the annual general meeting of shareholders, additional costs for preparing the financial statements, and legal fees.