Hitachi 2009 Annual Report Download - page 78

In January 2007, the European Commission ordered the Company and one of its affiliated companies to pay a fine for
infringement of EC antitrust rules regarding alleged antitrust violations for the gas insulated switchgear equipment used at
substations. In April 2007, the Company lodged an appeal with the Court of First Instance of the European Communities
requesting the court to annul the decision of the European Commission. The determination has not been rendered at present,
but the Company accrued the reasonably estimated amount for the fine.
In October 2006, a subsidiary and an affiliate of the Company in the U.S. received a grand jury subpoena in connection with
the investigation conducted by the Antitrust Division of the U.S. Department of Justice in respect of alleged antitrust violations
relating to static random access memories. In December 2008, these companies received information that the Antitrust Division
of the U.S. Department of Justice would terminate the investigation of this matter.
In December 2006, the Company and a subsidiary in Europe received requests for information from the European Commission,
a subsidiary in Japan received a grand jury subpoena in connection with the investigation conducted by the Antitrust Division
of the U.S. Department of Justice and received requests for information from the Fair Trade Commission of Japan, and an
affiliate in Japan received a request for information from the Fair Trade Commission of Japan, all in respect of alleged antitrust
violations relating to the liquid crystal displays. In December 2008, a subsidiary in Japan received a cease and desist order
from the Fair Trade Commission of Japan, but it has not received a surcharge payment order. The Japanese subsidiary accrued
the reasonably estimated amount for the loss in relation to the investigation by the Antitrust Division of the U.S. Department
of Justice as of March 31, 2009, and paid that fine in June 2009.
In June 2007, the Company received requests for information from the European Commission in respect of alleged antitrust
violations relating to dynamic random access memories.
In September 2007, a subsidiary and an affiliate of the Company in the U.S. received a grand jury subpoena in connection
with the investigation conducted by the Antitrust Division of the U.S. Department of Justice in respect of alleged antitrust
violations relating to flash memories.
In November 2007, a subsidiary of the Company in the U.S. received a grand jury subpoena in connection with the investigation
conducted by the Antitrust Division of the U.S. Department of Justice in respect of alleged antitrust violations relating to
cathode ray tubes. In addition, in November 2007, two subsidiaries in Asia and in Europe received requests for information
from the European Commission. Furthermore, in November 2007, a subsidiary in Canada received requests for information
from the Canadian Competition Bureau.
In December 2008, the Company received requests for information from the European Commission in respect of alleged
antitrust violations relating to power transformers.
The Company and these companies do not concede the alleged antitrust violations, but depending upon the outcome of
these investigations, fines or surcharge payments, the amount of which is uncertain, may be imposed on them. In addition,
subsequent to these actions by the competent authorities, a number of class action lawsuits have been filed against the
Company and some of these companies in the U.S. and Canada.
Depending upon the outcome of the above legal proceedings, there may be an adverse effect on the consolidated financial
position or results of operations. Currently the Company is unable to estimate the adverse effect, if any of many of these
proceedings. Accordingly, except as otherwise stated, no accrual for potential loss has been made.
In addition to the above, the Company and certain subsidiaries are subject to several legal proceedings and claims which
have arisen in the ordinary course of business and have not been finally adjudicated. These actions when ultimately concluded
and determined will not, in the opinion of management, have a material adverse effect on the consolidated financial position
or results of operations of the Company and subsidiaries.
76 Hitachi, Ltd.
Annual Report 2009