Seiko Epson's subsidiary Epson Imaging Devices Corp. has agreed to settle for US$150 million civil litigation in the United States brought by Motorola Mobility over pricing of liquid crystal displays.
The litigation against Epson Imaging and another Epson affiliate sought damages stemming from the purchase and sale of liquid crystal displays.
As a result of the abovementioned settlement and settlements of other lawsuits, Epson said it would record an extraordinary loss of 13,320 million yen in the first quarter of the current fiscal year. In light of this and recent business trends, the company will also revise its first half and full year outlooks.
In October 2009, Motorola, Inc. filed a lawsuit in the United States on behalf of itself and a number of its affiliates against Epson Imaging and another Epson affiliate alleging violations of antitrust and competition laws. In 2011, Motorola Mobility LLC was substituted as the plaintiff in the action.
Epson Imaging has vigorously defended the lawsuit. After consideration of the expense of continuing litigation and other factors, however, Epson Imaging determined that settlement of the litigation is in its best interests.