CASE BACKGROUND

On October 8, 2017, Kobe admitted to falsifying test data regarding product strength and durability across two of its metal components. While originally it was thought to only pertain to its aluminium and copper products, it was later revealed to extend to several additional metal parts. Shortly after the October 8th disclosure, it was discovered that over the course of several years, approximately 500 companies worldwide received falsely certified products from Kobe Steel. As a result of these disclosures, on October 13, 2017, Kobe’s stock price fell approximately 40%.

On December 21, 2017, it was revealed that Kobe executives were aware of the falsified reporting. Finally, after several external investigations, Kobe released a statement confirming that management had knowledge of the fraudulent reporting tactics spanning over 5 decades. Kobe announced to the market that it was “too difficult to estimate the impact of the improper conduct” on its previously forecasted $308 million FY2017 profit projections. While Kobe’s stock price plummeted approximately 40% between October 8 and October 13, on November 2, 2017, it recovered to stay almost 20% down through the end of 2017. This resulted in a market cap loss of about $9.37 million.

DETERMINING ELIGIBILITY & COSTS

Shareholders are eligible to participate if they acquired shares on or after May 31, 2013 and held those shares through March 9, 2018.

In Japan, adverse-party cost shifting only works in one direction – against the defendant. While the losing side will not be responsible for the other side’s attorneys’ fees, the court may require the losing side to pay court costs for both parties. DRRT is funding the litigation on a “no win, no fee” basis in accordance with the terms of its funding agreement. This will include indemnifying you against any potential risk for adverse party costs. All expenses, including the lawyers’ fees and all other costs of the class action, will be paid by the funder.

If successful, the funder will be paid its contractual percentage success fees plus reimbursement for legal fees and case costs from the settlement or judgment.

NEXT STEPS

The participation deadline for the next filing is March 18, 2020. If investors decide to participate, they must have compensable losses under Japanese law. Please contact your FRT Representative or email us learnmore@frtservices.com if you would like to discuss registration in this case.

FRT can review your estimated damages and, if material, provide your trading data — anonymously and without disclosure of your identity — to the organizer for further evaluation of your losses.

Learn More

For more information on this case or FRT Opt-In Monitoring service, please contact us at learnmore@frtservices.com.

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