Molex Incorporated settles lawsuit over unauthorised loans

Molex Incorporated has settled a lawsuit brought against the electronic components company over alleged unauthorised loans, it said Friday.

The company has agreed to pay Mizuho Bank 17bn Japanese yen, ending a litigation which started in the Tokyo District Court in August 2010.

Molex expects the settlement costs for the quarter ending March 31st, to reach between $21m to $23m before based on current foreign exchange rates.

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Mizuho has dismissed district court proceedings and released about $4.6m, based on current foreign exchange rates, that the bank has held since 2010.

The banks also released Molex from any future claims relating to unauthorised loans and provisional attachments.

"We believe that continuing protracted and costly litigation with an uncertain outcome is not in our best interests," said Martin Slark, Vice Chairman and Chief Executive Officer of Molex.

"This settlement, by eliminating that cost and uncertainty, allows us to focus on executing our businessstrategy."

At December 31st, Molex had an accrued liability of $170.7m and disclosed a contingent liability of $66.2m with respect to the unauthorized loans, the company added.

RD