Sumitomo Electric Industries, Ltd. (hereafter “Sumitomo Electric”) and its consolidated subsidiaries, Sumitomo Wiring Systems, Ltd. (hereafter “SWS”), Sumitomo Electric Wiring Systems, Inc. (hereafter “SEWS”) and Sumitomo Wiring Systems (U.S.A.) Inc. (hereafter “SWS-USA”), have entered into Settlement Agreements, dated as of September 15, 2015 (Japan time: September 16, 2015) , with the Indirect Purchaser Plaintiffs in class action lawsuits in the United States District Court for the Eastern District of Michigan, Southern Division.
1. Background of Lawsuits and Settlements
Since October 2011, class action lawsuits have been brought against Sumitomo Electric, SWS, SEWS and SWS-USA (collectively, the “Sumitomo Defendants”) in the United States on the ground that the plaintiffs incurred damages as a result of alleged violations of the United States antitrust laws regarding sales of automotive wire harnesses and related products and heater control panels. On September 15, 2015 (Japan time: September 16, 2015) , after negotiations, the Sumitomo Defendants reached settlements with certain of the plaintiffs, namely the Indirect Purchaser Plaintiffs (consisting of Automobile Dealership Plaintiffs and End-Payor Plaintiffs).
2. Settlement Plaintiffs
Indirect Purchaser Plaintiffs (consisting of Automobile Dealership Plaintiffs and End-Payor Plaintiffs)
3. SettlementAmount
Settlement Amount: 50 million US dollars
This settlement is conditional upon final approval of the United States District Court for the Eastern District of Michigan, Southern Division.
4. Effect on Financials
This matter will not require an adjustment to Sumitomo Electric’s second quarter and full-year consolidated financial forecasts for the fiscal year 2015, which were stated in Fact Book 2014 4th Edition.
The class actions described above are based on alleged violations that took place prior to 2010, and no new violations have been discovered since that time. In June 2010, Sumitomo Electric established a set of rules and regulations for compliance with competition laws in order to strengthen its competition law compliance on a group-wide basis. This includes establishing an organization dedicated to running compliance policies and programs. Compliance with competition laws remains one of the highest priority itemsfor our business, and we will strive to engage in business activities in a fair manner.
