Sumitomo to Take Loss To Settle U.S. Lawsuits Copper scandal
INTERNATIONAL BRIEFS; Sumitomo to Take Loss To Settle U.S. Lawsuits
Published: May 9, 1998
The Sumitomo Corporation of Japan said yesterday that it would take an extraordinary loss of $150 million to settle class-action lawsuits filed in the United States against the company over rogue copper trading. Yasuo Hamanaka, a copper trader, received an eight-year prison term in March for running up losses of $2.6 billion in the world's biggest unauthorized trading scandal. Sumitomo said the extraordinary loss would be partly offset by 10 billion yen, or $75 million, of capital gains generated from selling property in Osaka.
Sumitomo also sharply lowered its estimate of its profit in the year that was recently completed. It now projects a profit of about 22 billion yen, or $165.4 million, down from 30 billion yen.