2 Americans sue Toshiba over botched reactor project

December 27, 2017

Tokyo- Two South Carolinians have sued Toshiba Corp. for compensation for losses they incurred from the cancellation of a nuclear power reactor project by a Toshiba unit that went bust, the Japanese electronics and machinery maker said Wednesday.

This is the first such lawsuit since the US unit, Westinghouse Electric Co., filed for Chapter 11 bankruptcy protection in March.

In the petition, the plaintiffs said that they shouldered some of the costs to build two reactors at a nuclear power station in the US state by paying electricity bills to which part of the expenses was added. They claimed that they suffered losses because the project was canceled following the collapse of Westinghouse.

The plaintiffs indicated a plan to make the lawsuit a collective action. Meanwhile, a notice on their petition does not show how much they are seeking in the suit, according to Toshiba.

At the moment, it is difficult to make a reasonable assumption on the potential financial impact of the lawsuit, Toshiba said. But the company added that it does not expect the latest action to have a major impact on its fiscal 2017 earnings. Jiji Press