NTN Notification of the end of US Class Action

Class action lawsuit against NTN Corporation and some of its subsidiaries (collectively, “NTN”) has been pending in the United States District Court for the Eastern District of Michigan. NTN has reached an agreement to settle with direct purchasers plaintiffs on 24th November, 2020(JST)(23th of November, 2020(EST)).

By this settlement, all US Class Actions will be ended. Note that NTN has already reached an agreement to settle with indirect purchasers plaintiffs on 17th November, 2016(JST)(16th of November, 2016(EST)).

1. Concerned Parties of the Settlement

Direct purchasers

2. Process from Filing of Class actions to Settlement

The direct purchasers plaintiffs alleged, among other things, that the defendants conspired with each other to fix prices of bearing sales, and sought damages, injunctive relief, and other relief against defendants. NTN denies that it engaged in any such conduct as relates to the U.S. market. NTN was investigated by the U.S. Department of Justice(“DOJ”) from November 2011 and received a letter from DOJ in March 2015 that NTN was no longer subject of its investigation. Nevertheless, in consideration of litigation costs and impact on operations, NTN concluded that it is best to settle all claims with the direct purchasers. The settlement, which does not contain any admission by NTN of any wrong-doing, will require the approval of the United States District Court for the Eastern District of Michigan.

NTN is not allowed to disclose the terms and conditions of the settlement agreement due to the confidentiality obligation.

3. Future Prospect

We will post an extraordinary loss in relation to the settlement in the third quarter results of this fiscal year. If it is determined that the business forecast of this fiscal year should be revised, we will disclose it immediately.