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Japan Corporate Risk (Page 2)

Investigations, recalls, restatements, lawsuits and late filings at Japanese companies.

  1. FreeBit restates net profit lower and rates its financial controls ineffective

    FreeBit's restated half-year net profit is 3.8% lower even though operating profit rose, and its internal control report says the board and auditors did not adequately examine deals involving its founder-president.

  2. Finance minister says five FX brokers reported customer damage tied to GMO Internet servers

    Japan's finance minister said five FX brokers have reported customer damage thought to be linked to GMO Internet rental servers; they have suspended trading for affected customers, while the FSA's authority covers only domestically registered operators.

  3. Furusato Choice restarts its partner-site link, but donor-facing services stay shut

    Trust Bank is restarting the system linking Furusato Choice to partner sites from October 28, but donations will reopen partner by partner and the donor-facing site stays suspended, while CHANGE Holdings is still assessing the effect on consolidated results for the year to March 2027.

  4. Air Water has a new board structure, but internal audit stands at 25 against a target of 52

    Air Water's revised report to the Tokyo Stock Exchange shows the board restructuring complete, but internal audit has 25 people against a target of 52 and the probe into executive liability is not due to finish until December.

  5. GMO Internet will pay up to ¥3mn per data release and its parent adds a $1mn bounty

    Customers whose data an apparent attacker published will receive ¥10,000 to ¥25,000 per category, capped at ¥3mn per release, while parent GMO Internet Group funds a bounty of up to $1mn; the total cost cannot yet be calculated.

  6. Hokko Chemical puts leak response at ¥300mn special loss, with ¥500mn of drain rebuilds to follow

    Hokko Chemical expects about ¥300mn in special loss for its Okayama wastewater leak and keeps full-year guidance, helped by a ¥237mn securities gain; a further ¥500mn of drainage rebuilding is planned over about two years and is excluded.

  7. giftee Group expects ¥550mn loss after hackers issued e-gifts

    giftee Group expects a roughly ¥550mn extraordinary loss after a third party exploited a vulnerability to issue e-gifts illegitimately, with no customer asset loss or personal data leak confirmed so far.

  8. Court dismisses suit seeking permanent shutdown of Chubu Electric's Hamaoka units 3 to 5

    A Shizuoka court has rejected the claims of 34 residents who sued in 2011 to end operations at Hamaoka units 3 to 5, and Chubu Electric says the ruling does not affect its results.

  9. Nidec decides to sue former directors, auditors and its ex-CFO, but has not yet filed

    Nidec has decided to seek damages from six former directors, two former auditors and a former CFO, but it has not filed, is still setting claim amounts, and has deferred surplus-related liability until its past accounts are corrected.

  10. FreeBit to recoup ¥493mn CountUp price after patent-valuation error

    FreeBit expects ¥492,999,999 back from its former president, plus a ¥117.6mn settlement, after a patent-ownership premise behind the CountUp valuation proved wrong; an earnout of up to ¥430mn will not be paid.

  11. ACCESS stays on TSE special caution list after exchange finds controls not properly operating

    The Tokyo Stock Exchange kept ACCESS under special caution, citing weak receivables controls at an overseas network subsidiary and gaps in related-party approvals; the company says it will publish concrete measures around the end of November.

  12. Joshin says up to 6mn member records may have leaked in cyberattack

    Joshin says its member database server may have exposed up to about 6 million records, with smaller possible exposures in its subscription service and a renovation photo system, while the investigation continues and some services stay down.

  13. Ymirlink says data left 49 email systems, and the record count may rise

    Ymirlink says data was output from 49 Cuenote FC systems, a cumulative 51,628,280 records, and the figure may grow because 16 systems are still being investigated; unsolicited emails impersonating third parties from its domain have also been confirmed.

  14. Furusato Choice restarts its back-office system, but donations stay shut

    Trustbank has restarted the donation management system used by municipalities and gift suppliers, but Furusato Choice donations remain suspended after a leak of 4,454,097 records, and CHANGE Holdings is still assessing the impact on its results.

  15. Furusato Choice breach widens for five donors, with card details accessed for two

    CHANGE Holdings says five of the 4,454,097 affected Furusato Choice members lost more data than first disclosed, including card details for two, while the total count is unchanged and the effect on earnings is still being assessed.

  16. GMO Internet halts all desktop-cloud servers after trading-account logins may have been taken

    A third party planted malicious programs on customer servers at GMO Internet's Onamae.com Desktop Cloud, and trading-account login details stored there may have been misused. All plans stay offline, with no restart date and 26,739 servers potentially affected.

  17. Taisei barred from private civil-engineering work for 120 days from November 7

    Taisei Corporation's 120-day suspension, from November 7 to March 6, applies only to nationwide private-sector civil-engineering work, and the company has decided to withdraw its Supreme Court challenges to the Japan Fair Trade Commission's cease-and-desist order.

  18. Paycloud says hackers took 1.42mn Value Card records, with no actual losses reported

    A web server flaw at Paycloud subsidiary Value Design let a third party take IDs, PINs and balances on 1,424,748 Value Card records, 569,224 of them issued IDs; the company reports no actual damage from misuse and no personal data exposed.

  19. Fenwal Controls of Japan to recall 4,001 fire-suppression release devices after cold-test failure

    Fenwal Controls of Japan will replace all 4,001 HPR-510 release devices after a minus-20-degree discharge test failure, and the NFCV-1 container valve has lost its type approval; HPR-400 and HPR-500 devices passed testing.

  20. Hokko Chemical names two suspected leak sources at Okayama plant, targets March 2027 for groundwater countermeasure works

    Hokko Chemical says degraded concrete at one Okayama synthesis plant and a cracked buried pipe at another are suspected sources of July's benzene wastewater leak, with groundwater countermeasure construction targeted for completion by around March 2027.

  21. and ST HD says about 2.5mn customer records may have leaked in server breach

    and ST HD says a server intrusion may have exposed about 2.5mn customer records and 10,000 business-partner records, with payment data and customer-set passwords excluded, while member points remain unusable in stores and online.

  22. Cybertrust Japan clears Google review for new intermediate CA, awaits Apple

    Google approved Cybertrust Japan's new intermediate CA on 20 October, but Apple's review is pending; the company plans to restart certificate issuance at the earliest two business days after Apple signs off, offering a Secom Trust Systems product meanwhile.

  23. Capcom ID breach exposes 11.77mn accounts, with 196 passwords changed by intruders

    Capcom says email addresses and system identifiers for 11,774,247 CAPCOM ID accounts leaked and 196 had passwords changed without authorization, while it has confirmed no leak of customer-set passwords and warns of impersonation emails.

  24. Koike Sanso Kogyo postpones interim results after cyberattack, now expected past the 45-day statutory deadline

    Koike Sanso Kogyo has postponed its November 9 interim results because systems remain disrupted after an October 5 cyberattack, and it expects the announcement to pass the 45-day statutory deadline; the notice gives no new date.

Japan Corporate Risk (Page 2) | Tokyo Brief