While Chugoku Electric Power Co.'s shareholders asked 22 directors at the time to file a lawsuit demanding compensation for the payment of a surcharge due to the fact that Chugoku Electric Power had formed a cartel over the sale of electricity to businesses, the company decided to sue three of them, including the former chairman and president.
In March, Chugoku Electric Power was ordered by the Japan Fair Trade Commission to pay a surcharge of more than 3.707 billion yen for allegedly forming a cartel with Kansai Electric Power over the sale of electricity to businesses, and in June, shareholders requested that 6 directors at the time file a lawsuit for compensation.
Chugoku Electric Power Co., Ltd. announced on March 22 that it has decided to file a lawsuit in the Hiroshima District Court seeking damages against three of them, former Chairman Kishige Shimizu, former President Natsuhiko Takimoto, and former Vice President Nobuo Watanabe, alleging that acts in violation of the Antimonopoly Act were found as a result of the investigation by establishing an investigative committee consisting of outside lawyers.
The amount charged to the three is undecided at this time.
Of the three people sued, former Chairman Shimizu resigned as an advisor and former President Takimoto as a special advisor, both of whom resigned on March 3.
Chugoku Electric Power Co. said, "We take this situation seriously and strive to restore trust as soon as possible."