Notice of Lawsuit Against Former Executive Director | July 2026

Overview of the Lawsuit

On July 30, 2026, Sanrio filed a lawsuit at the Tokyo District Court against a former executive director seeking damages related to inappropriate compensation, with a claimed amount of approximately 440 million yen. The lawsuit concerns expenses related to investigation costs, shareholder meeting expenses, and financial closing costs. The investigation was based on the report by the Special Investigation Committee published in May 2026, which cites the defendant's breach of fiduciary duty as the cause. Further disclosures will be made as the lawsuit proceedings and damages progress.

Future Outlook and Corporate Response

Sanrio expects the impact on its financial results to be minimal. However, it will continue to pursue responsibility for damages incurred by its US subsidiary and implement measures to prevent recurrence, aiming to restore trust and enhance corporate value. The company will continue to respond sincerely to shareholders and stakeholders and reinforce governance.