DENSO Corporation (hereafter “DENSO”) and its certain consolidated subsidiaries have entered into Settlement Agreements with the Automobile Dealership Plaintiffs and End-Payor Plaintiffs in putative class action lawsuits in the United States.
1. Background of Lawsuits and Settlements
Since October 2011, putative auto parts class action lawsuits have been brought against DENSO in the United States alleging that the plaintiffs incurred damages as a result of alleged violations of the United States antitrust laws. These lawsuits have been merged as a multi-district-litigation pending in the U.S. District Court, Eastern District of Michigan. After extensive negotiations, DENSO has reached settlements with the Automobile Dealership Plaintiffs and the End-Payor Plaintiffs. These settlements are still subject to approval by the Court.
2. Settlement Plaintiffs
Automobile Dealership Plaintiffs and End-Payor Plaintiffs
3. Settlement Amount
US$61.2 million (approximately 6.4 billion yen) to the Automobile Dealership Plaintiffs and
US$193.8 million (approximately 20.4 billion yen) to the End-Payor Plaintiffs.
4. Effect on Financials
DENSO does not expect any significant impact on its consolidated financial forecast for the year ending March 31, 2017 as a result of this matter.
It is DENSO’s policy to comply with all applicable antitrust laws. Since its U.S. subsidiary was raided by the U.S. Department of Justice in February 2010, DENSO group companies have been taking various preventive measures, including implementing more stringent compliance rules, more enhanced compliance training and more meticulous compliance monitoring, in order to further ensure that they comply with all applicable antitrust laws. DENSO believes it is in complete compliance with all antitrust laws.
DENSO is committed to prevent recurrence of any inappropriate conduct and strives to restore full confidence from all stakeholders by complying with all applicable antitrust laws around the world.
