Asulina Reaches Settlement in Lawsuit, Anticipates Special Gain

TOKYO, Jul 24 (Pulse News Wire) – Asulina CO.,LTD. (3647.T) announced that it reached a settlement (the “Settlement”) with some defendants in a lawsuit filed against former executives.

The Settlement was finalized, following legal proceedings initiated on October 11, 2022, and April 25, 2024. As part of the Settlement, ASULINA expects to recognize a special gain from receiving settlement funds. The amount exceeds the average of the parent company's shareholders’ net income for the last five fiscal years. The special gain will be recorded in the fourth quarter of the fiscal year ending August 2026.

The company pursued the lawsuit based on findings from a special investigation committee, which uncovered inappropriate accounting practices related to reported sales figures. These issues led to significant expenses, including investigative costs, corrections to financial statements, and penalties. The Settlement was deemed reasonable considering various factors such as the economic burden of prolonged litigation. Further impacts on ASULINA’s consolidated performance for the fiscal year ending August 2026 are currently being assessed.

Any additional material developments will be disclosed promptly.