Olympus Pays JPY6bn In Damages To Terumo
On November 18, Olympus reached a judicial settlement with regard to a civil action filed by Terumo against the company in the Tokyo District Court, for JPY6.6bn damages.
In response to the discovery of misstatements by Olympus concerning significant matters in its securities registration statement submitted on August 4 2005, and the prospectus of the same month in connection with the issue on the deferred loss recognition, Terumo filed an action against Olympus for damages in the Tokyo District Court on July 23 2012, claiming a compensation for the alleged damages of JPY6.6bn arising from Terumo's 6.8mn shares of Olympus.
Since the settlement fee was already set aside as provisions for losses on lawsuits by Olympus, the settlement will not affect the company's business results for FY2013.
As per the conditions of the settlement, Olympus will pay to Terumo JPY6.0bn cash to settle the lawsuit and Terumo will waive claims made against Olympus exceeding the amount. Terumo plans to record an extraordinary gain of JPY6.0bn in FY13. This will not result in changes to its forecast of consolidated financial results for the FY13, ending March 2014.