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  • Toshiba Corporation Notice on an Action for Compensatory Damages Filed Against Toshiba

    TOKYO—Toshiba Corporation (TOKYO: 6502) (the “Company”) hereby gives notice that it was served yesterday with a further action for compensatory damages in relation to the accounting issue (“the Action”).

    In addition, the Company also herewith gives notification, in 2. below, of the status of the other actions for compensatory damages filed against the Company in Japan in relation to the accounting issue.

    1. Outline of the Action

    The Action against the Company was filed with the Tokyo District Court by 97 foreign institutional investors on September 6, 2017, seeking compensatory damages in the amount of 33.0 billion yen, on the grounds of damages incurred due to the Company’s inappropriate accounting. The Company was served with the complaint yesterday.

    The Company will handle the matter appropriately after taking into account the plaintiffs’ assertions in the Action.

    As the parties to the Action gave notice of their intention to make a complaint in March 2017, the Company was able to make a certain provision for the impact in its FY2016 business results, as announced on August 10 this year, and will, if necessary, record a further provision for a reasonably estimable amount for the Action in its financial statement for the third quarter of FY2017.

    2. Status of the other actions for compensatory damages in Japan
    The Company provides regular updates on the actions filed in Japan seeking compensatory damages in relation to the accounting issue. Prior to today, the most recent update was made on November 14, 2017, in "Notice on an Action for Compensatory Damages Filed Against Toshiba.” The outline of each of these actions is as described in the table attached below.

    A
    s of today, the Company has been served with 34 complaints in all, and the total amount sought in these actions is approximately 173.0 billion yen.
    https://static.ombe.com/slir/w400/forums/200/rickpics/ToshibaTable.jpg

    For actions 1 to 33, the Company has made provision for a reasonably estimable amount in its financial statements for periods up to and including the second quarter of FY2017. If necessary, the Company will record a further provision for a reasonably estimable amount for action 33 in its financial statement for the third quarter of FY2017.