Risk of losses arising from pending litigation
First written in FY2016. 4 of 12 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2024-Q1.
- FY2024-Q1Cited as achievedAnnual report
「In the current quarter, the judgment in the litigation with Quanta Computer Inc. became final and binding. As a result, extraordinary income of ¥363 million was recognised, and quarterly net income attributable to owners of the parent was ¥597 million, compared with ¥161 million in the same quarter of the previous year.」
For the Quanta litigation, which had already been finally resolved, the company actually recognised extraordinary income of ¥363 million, comprising ¥75 million in damages received upon finalisation of the judgment and ¥287 million from the reversal of the valuation allowance for the purchase agreement. - FY2023AchievedAnnual report
「We had been in dispute with Quanta Computer Inc. (hereinafter, “Quanta”) since 2016 over smartphones that we outsourced to Quanta for manufacture in 2015. On 25 May 2023, the Tokyo District Court issued its first-instance judgment, which became final and binding on 9 June 2023 after the appeal period expired.」
The judgment in the litigation with Quanta became final and binding on 9 June 2023 after filing, bringing the dispute to an end. Based on the judgment, the company expects to recognise extraordinary income of ¥363 million, comprising ¥75 million in damages received and ¥287 million from the reversal of the valuation allowance for the purchase agreement. - FY2023-Q3MitigatedAnnual report
「As Quanta partially changed the details of its claim on 19 January 2023, the amount claimed in the counterclaim became approximately US$4.04 million plus late-payment damages, as detailed below.」
In the litigation with Quanta, the amount claimed in the counterclaim declined from approximately US$5.46 million to approximately US$4.04 million. However, the litigation continues to be heard by the Tokyo District Court. - FY2021-Q3Partial withdrawal of claim; litigation continuesAnnual report
「On 20 January 2021, Quanta withdrew part of its claim, namely approximately US$130,000 in late-payment damages on the purchase price already paid. The amount claimed in the counterclaim therefore became approximately US$5.46 million plus late-payment damages. This litigation continues to be heard by the Tokyo District Court.」
While Quanta withdrew its claim for approximately US$130,000 in late-payment damages, the litigation concerning approximately US$5.46 million plus late-payment damages is continuing. - FY2020WorsenedAnnual report
「This litigation continues to be heard by the Tokyo District Court.」
The litigation with Quanta is continuing, and our claim has changed to a claim for approximately ¥942 million in damages under California law. - FY2019-Q1MaterialisedAnnual report
「Quanta has now filed a counterclaim in this litigation seeking, among other relief, (i) approximately US$2 million as the purchase price of approximately 14,000 units of the products in question that we refused to accept, (ii) approximately US$3.3 million in damages for materials and other items procured in anticipation of our placing additional orders, and payment of late-payment damages on these amounts.」
Quanta filed a counterclaim, giving rise to a new dispute involving a claim for approximately US$5,602,360.05 plus late-payment damages. - FY2018-Q1MaterialisedAnnual report
「This was mainly attributable to the recognition of a ¥341 million quarterly net loss before income taxes and other adjustments and the payment of ¥342 million in settlement amounts for litigation.」
For litigation settled in the previous fiscal year, payment of ¥342 million in settlement amounts was reflected in operating cash flow in the current quarter. The disputes themselves had already concluded. - FY2017MitigatedAnnual report
「We continued to assert the validity of our position in the appellate proceedings. However, based on a management decision to focus on our growth strategy of expanding the sales network for low-cost SIMs for the Docomo network and launching sales of low-cost SIMs for the SoftBank network, and after comprehensively considering the impact of prolonged litigation on management, a settlement was reached in the appellate proceedings on 10 March 2017 (the settlement record was issued on 13 March 2017), bringing this litigation to an end.」
The litigation with Kaga was concluded through a settlement. The employee dismissal litigation and the ZTE litigation had also already concluded, reducing the risk associated with the major pending disputes. - FY2017-Q3MitigatedAnnual report
「The first-instance judgment dated 18 March 2016 dismissed our claims, but a settlement was reached in the appellate proceedings on 20 December 2016, bringing this litigation to an end.」
The product litigation with ZTE was settled in the appellate proceedings and has concluded. The litigation with Kaga, however, is under appeal, so litigation risk as a whole has not disappeared. - FY2017-Q2MaterialisedAnnual report
「The first-instance judgment dated 30 September 2016 partially upheld Kaga’s claims and ordered us to pay ¥342.095 million. We therefore filed an immediate appeal on 3 October 2016 and intend to continue fully contesting the claims in the appellate proceedings.」
A first-instance judgment was issued in the previously pending product litigation, resulting in an order to pay ¥342.095 million. The company has appealed. - FY2017-Q1MaterialisedAnnual report
「Provision for litigation losses 42,800」
For pending litigation, ¥42.8 million was recognised as a provision for litigation losses under extraordinary losses in the current quarter. - FY2016First statedAnnual report
「Depending on the outcome of this litigation, our company may incur losses, but the total amount of contingent liabilities cannot reasonably be calculated at this time.」
Litigation over the dismissal of a former employee, litigation concerning defects in ZTE tablet devices and litigation concerning devices sold are continuing.