Kajima withdrew its Supreme Court appeal and review petition challenging a Fair Trade Commission order over JR Central's Chuo Shinkansen project. Related cases end, measures are complete and its full-year forecast is unchanged.
Key facts
__Kajima withdrew its appeal and petition for the Supreme Court to accept its case, which sought to overturn a cease-and-desist order. The series of lawsuits will now end.\n\n- Administrative case: The Tokyo High Court dismissed Kajima's appeal. Kajima challenged that ruling at the Supreme Court and also petitioned for the case to be accepted.\n- Reason for withdrawal: Kajima said it accepted the Supreme Court's decision to dismiss its appeal in a criminal case involving the same matter.\n\nThe withdrawal ends all litigation related to the matter, including the administrative case seeking to overturn the order. The disclosure described the decision as having been made in light of the ruling in the criminal case.
Kajima has completed all measures required under the cease-and-desist order and has left its full-year consolidated earnings forecast unchanged. Kajima said it will continue to strengthen compliance and prevent a recurrence as it seeks to restore trust.\n\n- Next steps: Kajima will continue to reinforce compliance and pursue measures to prevent a recurrence.\n- Earnings outlook: Kajima said the withdrawal will not change its full-year consolidated earnings forecast.\n\nFor investors, the end of the litigation and Kajima's decision to maintain its earnings forecast are key points. The disclosure did not quantify any financial impact. Attention will turn to the continued implementation of recurrence-prevention measures and efforts to restore trust.
Analyst take
The disclosure confirms that Kajima withdrew its appeal in the administrative case, ending the related litigation, and has completed all measures required under the order. Kajima is maintaining its full-year consolidated earnings forecast, with no change to its outlook disclosed. Investors will want to monitor whether recurrence-prevention measures take hold and how Kajima progresses in restoring trust.