Molex announces settlement of litigation with Mizuho Bank
LISLE, Ill —
Molex Inc, an Illinois-based global electronic components company, announced Friday that it has settled litigation with Mizuho Bank, which commenced in Tokyo District Court in August 2010, regarding previously reported unauthorized loans.
The charge for the quarter ending March 31, 2013 related to this settlement is expected to approximate between $21-23 million before tax based on current foreign exchange rates.
Under the terms of the settlement agreement, Molex agreed to pay Mizuho 17 billion yen ($183 million based on current foreign exchange rates) and Mizuho agreed to dismiss the district court proceedings and release approximately $4.6 million (based on current foreign exchange rates) that the bank has held since 2010. In addition, Mizuho agreed to release Molex from any future claims relating to the unauthorized loans and provisional attachments.
“We believe that continuing protracted and costly litigation with an uncertain outcome is not in our best interests,” commented Martin P. Slark, Vice Chairman and Chief Executive Officer of Molex. “This settlement, by eliminating that cost and uncertainty, allows us to focus on executing our business strategy.”
As of December 31, 2012, Molex had an accrued liability of $170.7 million and disclosed a contingent liability of $66.2 million with respect to the unauthorized loans.