Decision and Details
Filing of a lawsuit on the merits seeking damages and other amounts from the former representative director
Improper recording of the former representative director's personal expenditures as expenses, payment of a lump sum described as retirement benefits, improper recording of outsourcing expenses paid to a subsidiary, and non-return of the Company car. The Company determined that performance outside the litigation could not be expected.
The disclosure states that improper accounting and related matters resulted in damages of at least ¥76,318,110 and losses of at least ¥1,004,338,991 in total.
| Item | Details |
|---|---|
| Matter Covered | Filing of a lawsuit on the merits seeking damages and other amounts from the former representative director |
| Decision Date | 3 April 2026 (date the lawsuit was filed) |
| Implementation Date | 3 April 2026 (completed: lawsuit filed with the Nagoya District Court) |
| Period Covered | Improper accounting: fiscal years from 1 May 2021 to 30 April 2024, at least from the fiscal year ended April 2022 through the fiscal year ended April 2024. Non-return of the Company car: after the former representative director's departure on 25 October 2025 |
| Amount | Damages claimed: ¥76,318,110 plus delay damages. Restitution of unjust enrichment claimed: ¥1,004,338,991 plus delay damages. Lump sum in question: ¥1 billion. Deferred tax assets related to the provision for officers' retirement benefits: ¥306 million |
| Quantity / scale | 1 vehicle (Company car; the body of the disclosure does not specify the number of vehicles, so this is stated as a single vehicle) |
| Impact on Business Performance | The disclosure states that improper accounting and related matters resulted in damages of at least ¥76,318,110 and losses of at least ¥1,004,338,991 in total. |
| Reason | Improper recording of the former representative director's personal expenditures as expenses, payment of a lump sum described as retirement benefits, improper recording of outsourcing expenses paid to a subsidiary, and non-return of the Company car. The Company determined that performance outside the litigation could not be expected. |
| Related previous disclosures | “Notice concerning the publication of the investigation report by the third-party committee,” dated 4 September 2025 |
| Future plans | The Company will make timely disclosures as necessary regarding the subsequent progress of the lawsuit on the merits. |
Items this document does not state (2)
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 incurred damages as a result of the former representative director improperly recording personal expenditures as expenses, paying a lump sum described as retirement benefits, and improperly recording outsourcing expenses paid to a subsidiary. The Company car was also not returned. The Company determined that performance outside the litigation could not be expected.