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Japan Corporate Risk (Page 5)

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

  1. NTK Appeals Tokyo Court's Dismissal of ¥203.3bn Damages Claim Against Daiichi Sankyo

    Northern TK Venture has appealed to the Tokyo High Court after the district court threw out its entire ¥203.3 billion damages claim against Daiichi Sankyo over a blocked Fortis Healthcare tender offer, and the pharma company now says the earnings impact is under review rather than nil.

  2. Park24 Says Times Car Breach Exposed Data From 6.6 Million Accounts

    Park24 says a hacker viewed or improperly obtained names, addresses, driver's license images and other data from about 6.6 million Times Car and Times Business Service accounts, but that credit-card numbers were not leaked and passwords were stored in a form the company says cannot be read.

  3. Shionogi Amends Annual Report, Cuts Disclosed Director Pay Total

    Shionogi's amended securities report lowers disclosed compensation for its senior directors to ¥642mn from ¥895mn, driven by a corrected fringe-benefit figure for foreign-national directors; the correction also revises a related-party pay note but leaves other financial-statement figures unchanged.

  4. Prudential's Japan Sales Freeze Could Cost Up to $575 Million This Year

    Prudential Financial disclosed that suspending new sales at Prudential Life in Japan, following an employee misconduct investigation, cost $235 million in the first half and could reduce full-year international profit by as much as $575 million, with every additional month of suspension adding $50 million to $60 million to the bill.

  5. Toshin Holdings' Fiscal Year Shrinks to Eight Days Under Court-Led Rehabilitation

    Toshin Holdings' latest fiscal year lasted just eight days after the Nagoya-based mobile-phone-and-golf-course group entered court-supervised corporate rehabilitation on May 8, 2026, the culmination of a subsidiary accounting scandal that produced an auditor's disclaimer of opinion, a Tokyo Stock Exchange delisting-risk designation and covenant breaches with its banks; the truncated period posted a ¥236.9 million net loss, and the rehabilitation plan submitted to the Tokyo District Court in September remains unapproved.

  6. Shinto's Free-Float Shortfall Sets Up a 2028 Delisting Test

    Shinto Company's free-float market value slipped to ¥496.1mn, under half the ¥1.0bn Tokyo Stock Exchange Standard-market threshold, and the tile maker now has until the close of the fiscal year ending June 2027 to close the gap, or face a liquidation designation and delisting on January 1, 2028.

  7. Singapore Court Orders Nippon Chemi-Con Unit to Pay Dyson £92.7mn

    A Singapore court has ordered Nippon Chemi-Con's subsidiary SCC to pay Dyson Manufacturing about £92.7mn over component-defect claims dating to 2022, and the company says legal fees, delay interest and a further £3.1mn claim are still to be settled while it weighs an appeal.

  8. Information Strategy and Technology Moves to Fire Director Over WhiteBox Contract Rerouting

    An outside-lawyer investigation found the director rerouted subsidiary WhiteBox's marketing contracts to a company he personally controlled, and Information Strategy and Technology has set an October 9 record date for a shareholder vote on dismissing him, even as the company says further allegations remain under review.

  9. OTAKE Probe Finds Likely Antimonopoly Act Breach, Trims Sales by ¥477mn

    OTAKE Corporation's special investigation committee found that trades routed through a rival probably breach Japan's Antimonopoly Act, a conclusion that forces a ¥477 million cut to reported sales for the year to May 2026 while leaving ordinary profit unchanged, with recurrence-prevention measures still to come.

  10. Sanyo Trading Investigates Suspected $3.9mn Fraud at US Subsidiary

    A former finance chief at Sanyo Trading's US subsidiary, Sanyo Corporation of America, is suspected of diverting about $3.9 million (roughly ¥609mn) between June and September, caught only when staff matched bank records against the books, and the parent has now empanelled outside lawyers while the hit to earnings and any recovery remain undetermined.

  11. Advance Create slides into negative equity after accounting probe deepens losses

    Advance Create's shareholders' equity turned negative by ¥276mn and the Osaka insurance agency now expects a ¥391mn net loss for the year to September, reversing a previously guided ¥450mn profit, after a third-party investigation into improper accounting at an advertising subsidiary forced write-downs and a restatement of prior results.

  12. Kansai Electric Halts Mihama Unit 3 Reactor Over a Leak It Could Not Isolate

    Kansai Electric powered down the Mihama Unit 3 reactor after workers found water dripping at three drops a second from a feedwater-heater valve fitting they could not isolate without a shutdown, and the utility has not set a restart date or identified a cause.

  13. FSA Finalizes ¥6mn Surcharge Against I-ne Over 2022 Securities Report

    The Financial Services Agency has issued a formal surcharge payment order against I-ne CO.,LTD. over its securities report for the year ended December 2022, with a ¥6mn payment due November 17 that the company has already recorded as a special loss and says will carry no other earnings impact.

  14. Fire Halts Hot-Rolling Mill at Nakayama Steel's Osaka Plant

    A fire that burned power cables serving reheating-furnace equipment at Nakayama Steel Works' Osaka plant has stopped the hot-rolling mill, though no one was hurt and downstream processing continues normally.

  15. DKK Sets Up Outside Panel to Probe Timing of a ¥912mn Inventory Writedown

    DKK has appointed three outside experts to check whether a ¥912mn inventory valuation loss booked in the year to March 2026 should have been recorded in the prior fiscal year or the September 2025 interim period, even as the company insists its original accounting was correct.

  16. Third-Party Panel Finds One ESPOIR Deal Was Fake, Tips Company Into Negative Net Worth

    A reconstituted committee's finding that a year-end real estate consulting deal never happened pushes ESPOIR's consolidated balance sheet to a ¥108.7mn capital deficit, with the final number still not locked down.

  17. Supreme Court Rejects Taisei and Kajima Appeals Over Linear Shinkansen Bid-Rigging Case

    The Supreme Court's rejection of Taisei Corporation's final appeal fixes a ¥250mn fine and a suspended sentence for a former adviser over antitrust violations tied to Linear Chuo Shinkansen terminal-station construction, and Kajima Corporation says its own appeal in a related case tied to the same railway project has also failed.

  18. Chubu Electric Withdraws Hamaoka Restart Bid After Seismic-Data Misconduct

    Chubu Electric has withdrawn its restart applications for two Hamaoka reactors after its internal whistleblowing system failed to catch irregularities in seismic ground-motion data, and Japan's industry minister says he will weigh a maximum-strictness regulatory response once the utility answers a formal information order tied to the Electricity Business Act.

  19. Ureru Net Advertising Group's Equity Turns Negative, Breaching Tokyo Growth-Market Listing Rule

    Ureru Net Advertising Group's shareholders' equity turned negative at the end of its year to July 2026 after a net loss that widened to ¥1.11bn, breaching the Tokyo Stock Exchange's minimum net-asset standard for Growth Market companies; the firm says a share exchange and share deliveries completed on August 10 already pushed net assets back into positive territory, though a formal compliance plan for the listing rule has yet to be published.

  20. Hamai Industries Restates Five Years of Profit After Auditor Balks at Its Inventory Count

    An incoming audit firm refused to sign off on Hamai Industries' books over unverifiable stock valuations, pushing the Tokyo valve maker to restate results for every year from 2021 through 2025 and change how it grades slow-moving inventory.

  21. REVOLUTION Misses Earnings Deadline Again as Its Auditor Still Won't Sign Off

    The Tokyo Standard-listed real estate group could not get its third-quarter earnings reviewed in time because its auditor, Aria Audit Corporation, has withheld a conclusion since June, and an internal probe found 28 of 251 affiliated property funds were wrongly booked as real estate deals rather than financial ones, pushing REVOLUTION toward correcting two years of past filings.

  22. MATSUMOTO INC. Flags Going-Concern Doubt as Quarterly Cash Halves

    MATSUMOTO INC., the Tokyo-listed school-album and commercial printer, says a fourth straight year of negative operating cash flow has left its funding for the next twelve months uncertain, after quarterly cash fell to ¥313.9mn from ¥676.7mn even as its net loss narrowed to ¥100mn.

  23. Chubu Electric Pulls Hamaoka Restart Applications After Its Own Seismic Data Turns Out to Be Rigged

    Chubu Electric has pulled its Hamaoka Units 3 and 4 restart applications after an independent inquiry found staff manipulated seismic wave selections for years and then built paperwork to disguise it, prompting the exit of both the president and chairman.

  24. Chubu Electric Receives Report on Its Flawed Hamaoka Seismic Assessment, Withholds Release

    An outside panel has completed its investigation into how Chubu Electric wrongly assessed ground motion at Hamaoka Units 3 and 4, but the utility says only a redacted version will be published later and it still cannot quantify any hit to earnings.

Japan Corporate Risk (Page 5) | Tokyo Brief