Japan's Toyo Ink settles false claims allegations in US for $45m

18 December 2012 08:02  [Source: ICIS news]

TOKYO (ICIS)--Japanese chemical producer Toyo Ink SC Holdings and its US entities have agreed to pay $45m (€34m) to the US government to settle Department of Justice (DOJ) claims relating to anti-dumping duties under the Federal False Claims Act, Toyo Ink said on Tuesday.

The US DOJ alleged that Toyo Ink misrepresented the country of origin on documents presented to the US customs to avoid paying antidumping and countervailing duties, on imports of colorant carbazole violet pigment number 23 (CVP-23) between April 2002 and March 2010, the DOJ said on its web site on 17 December 2012.

Toyo Ink has not admitted the claims of the DOJ, the company said in an official statement.

“However, after careful deliberation, the company has comprehensively considered the relevant consequences including the costs etc. in connection with the matters of dispute in the litigation proceeding in the US. The Company Group then reached a decision that a settlement was the best choice, and chose to settle by paying the settlement fee,” Toyo Ink said.

The US government, including the DOJ, will end all actions against the Toyo Ink SC Holdings and its affiliates, the producer said.

Toyo Ink plans to record yen (Y) 3.8bn ($45.36m), the amount of the settlement fee with the addition of other expenses including court costs, as an extraordinary loss in the third quarter of the fiscal year ending March 2013, it said.

The company expects that the effect of this case on its projected consolidated financial results will be minor, Toyo Ink added.

($1 = €0.76 / $1 = Y83.82)

By: Tomomi Yokomura
+65 6780 4359

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