Feb 15 Electronic components maker Molex Inc said it would pay 17 billion Yen ($182.68 million) to settle litigation regarding unauthorized loans taken by one of its employees from Japan's Mizuho Bank.
Molex said it would take a charge of about $21 million to 23 million in the quarter ending March 31 because of the settlement.
In April 2010, Molex said an individual working at its Japan finance group obtained unauthorized loans, believed to be about $175 million, from third party lenders in the name of Molex Japan. ()
In August 2010, Mizuho Bank, which holds the loans, filed a complaint in the Tokyo District Court saying Molex Japan was liable for the repayment of the loans. ()
As per the settlement agreement, Mizuho agreed to dismiss the court proceedings and release about $4.6 million to Molex, the U.S. company said in a statement.
Mizuho also agreed to release Molex from any future claims relating to the matter, Molex said.
Molex had an accrued liability of $170.7 million and a contingent liability of $66.2 million with respect to the unauthorized loans as of Dec. 31.
Shares of Molex, which have gained 11 percent in the last three months, were up about 1 percent at $28.02 in morning trade on the Nasdaq.