#Japan #Tokyo #Mitsubishi Electric #Damage Claim #Lawsuit Settlement

Settlement Announcement of Damage Claim Lawsuit

Mitsubishi Electric Corporation has officially announced the successful settlement of a damage claim lawsuit, recently finalized on April 16, 2025. This agreement comes after a lengthy legal battle that began in late 2020. Below, we explore the details leading up to this resolution, the parties involved, and the implications moving forward.

Background of the Lawsuit

The lawsuit was initiated by Mitsubishi Electric on October 20, 2020, concerning special power cables supplied by our company. Initially, they demanded approximately 6.1 billion yen, which later escalated to a final claim of about 7 billion yen. Throughout the legal proceedings, our company maintained its stance, asserting that we held no liability for the claims presented.

However, a recent proposal for settlement from the court prompted a reevaluation of our position. After weighing the potential impacts on our business operations and the associated risks, it became evident that reaching a settlement was a more rational course of action compared to the uncertainties of continued litigation.

Details of the Settlement

The settlement was reached with Mitsubishi Electric, whose company profile is as follows:

• - Name: Mitsubishi Electric Corporation
• - Location: 2-7-3 Marunouchi, Chiyoda-ku, Tokyo
• - Representative: President Akira Urushibara

As part of the agreement, our company is required to pay Mitsubishi Electric a settlement sum of 4.8 billion yen. In return, Mitsubishi Electric has agreed to waive any further claims against our company. It's worth noting that due to confidentiality clauses included in the settlement contract, we cannot disclose additional details regarding other terms of the settlement.

Future Outlook

With this settlement now completed, we will recognize the stipulated payout as a special loss in both our individual and consolidated financial statements for the fiscal year ending March 2025. Importantly, we wish to clarify that our guidance for the consolidated earnings forecast for the full fiscal year 2025, announced on February 10, 2025, remains unchanged despite this development.

While the settlement brings closure to this prolonged issue, it also reflects our commitment to resolving disputes in a manner that enables us to focus on growth and innovation in our operations. As we move forward, we remain dedicated to upholding our business integrity and fostering positive relationships with all stakeholders involved.

This settlement marks a significant step in navigating legal challenges effectively, encouraging us to optimize our resources and efforts in pursuit of continued excellence in our industry.