Seiko Epson Shells Out $80M To Nokia In Settlement, Claims "Extraordinary Loss"
In November 2009, Nokia filed lawsuits in the United States and United Kingdom against Epson and its subsidiary companies including Epson Imaging Devices Corporation alleging violations of antitrust and competition laws. Epson has denied liability and vigorously defended the lawsuits. Because of the ongoing impacts of the lawsuits on its business and the expense of continuing litigation, however, the company has determined that settlement of the litigation is in Epson's best interests. Epson will pay Nokia the sum of US$80 million in full settlement of Nokia's claims, and Nokia will discontinue all related lawsuits filed against Epson and its global affiliates.
In fact, the company goes so far as to say that this settlement is causing an "extraordinary loss in its business results for the third quarter of the fiscal year ending March 2012." However, after evaluating factors such as recent business trends and prospects for extraordinary profits and losses going forward, Epson has decided to stand by its full-year forecast announced on November 14. Bah, humbug!