Settlements for Class Action in the U.S.
Kiyosu, Japan, September 19, 2018: Toyoda Gosei Co., Ltd. and its certain subsidiaries reached settlements in the class actions brought by Automobile Dealer Plaintiffs and End-Payor Plaintiffs in the United States District Court, Eastern District of Michigan (the “Court”) (the “Class Actions”) as follows.
The Class Actions were brought with respect to practices that took place prior to the plea agreement with the United States Department of Justice in 2014, and it does not mean that further subsequent violations were discovered.
1. Background of the Class Actions and the settlements
The Class Actions have been brought against Toyoda Gosei Co., Ltd. and its certain subsidiaries in the United States, seeking damages and other relief with respect to alleged violations of the United States antitrust laws in connection with the sale of automobile parts. Considering the possible increased litigation costs and the possible negative impact on its business management if the Class Actions are prolonged, Toyoda Gosei has, after negotiations, reached settlements with the Automobile Dealer Plaintiffs and End-Payor Plaintiffs.
2. Parties to the settlements and the settlement amount
Automobile Dealer Plaintiffs and End-Payor Plaintiffs: US$59 million (approximately ￥6.6 billion)
The settlements are subject to the approval of the Court.
3. Effect on financials
Toyoda Gosei expects to recognize it as antitrust related loss in the second quarter of the fiscal year ending March of 2019. Please refer to the “Notice Concerning the Revision of Financial Forecasts” that has been disclosed today, with respect to the consolidated financial result forecasts for the second quarter and the full year ending March of 2019.
Toyoda Gosei Group has developed an effective compliance system, given that it views compliance with antitrust laws as one of its critical management fundamentals. Going forward, Toyoda Gosei Group will continue to apply the measures it has taken to prevent the recurrence of similar violations, such as by implementing its compliance rules and training employees to comply with antitrust laws, and it will continue to endeavor to restore trust in Toyoda Gosei Group.