Shareholders Sue Suruga Bank President

March 20, 2019

Tokyo- Six shareholders of Suruga Bank on Monday filed a lawsuit against the president of the Japanese regional bank, demanding he pay some 56.5 billion yen in damages to the lender over its fraudulent loans for real estate investment.

The shareholders claimed that Michio Arikuni has responsibility for the failure of the Numazu, Shizuoka Prefecture-based bank to recover the bulk of loans extended for share house investment, as he was a member of its board at the time.

The suit was filed with Shizuoka District Court. Arikuni still sits on the bank's board.

The damages sought include some 51.5 billion yen, or 70 pct of the total amount of loans extended for share house investment in September 2016 or later, which the shareholders deem irrecoverable.

In November last year, Suruga Bank filed a lawsuit against former executives, including former Chairman Mitsuyoshi Okano, seeking a total of 3.5 billion yen in damages for their failure to prevent the fraudulent loans.

The following month, the bank filed another suit against the former executives, demanding a total of some 3.2 billion yen in damages over inappropriate loans extended to companies linked to its founding family.

Arikuni was not named in the two suits.

On Monday, the shareholders also filed to join the bank's lawsuits, demanding a significant increase in the amount of damages sought against the former executives. Jiji Press