Streaksai Regulatory News (STK)

31 Jan 2006 09:53

Softbank Corp31 January 2006 Announcement of the Withdrawal of a Lawsuit and the Filing of Another Lawsuit against an Affiliated Company SOFTBANK CORP. (hereinafter "the Company") announces that the lawsuit covered byits press release dated June 25, 2004, under the title "Announcement of theService of Complaint" was withdrawn by the plaintiff, MarketXT Holdings Corp.(hereinafter " MarketXT"), as of November 14, 2005, and that another lawsuit wasfiled with the United States Bankruptcy Court, Southern District of New York, bytrustees in the bankruptcy of MarketXT as of December 6, 2005. The amount ofdamages being sought by the plaintiff in the new lawsuit is in excess of $300million and it falls under the timely disclosure rules on a consolidated basis.The Company, therefore, presents the following information. The lawsuit stated below was filed as a counterclaim against the notification ofclaimable assets (equity interest) in MarketXT under Chapter 11 by SOFTBANK AMCORPORATION (formerly called SOFTBANK FINANCE CORPORATION; head office:Minato-ku, Tokyo; representative: Takashi Okubo; hereinafter "SBAM"), thewholly-owned subsidiary of the Company, and SOFTBANK CONTENTS FUND. The Company believes that the plaintifffs claim contradicts the facts and lacksrationality, as before, and SOFTBANK CONTENTS FUND has no reasonable connectionto the damages claimed. Therefore the Company deems neither defendant to belegally responsible and assumes that there is no probability of financial lossoccurring to the SOFTBANK Group from this lawsuit. 1. Litigants Plaintiff: (1) Trustees in the bankruptcy of MarketXT (2) Creditors committee of MarketXT Defendant: (1) SBAM (2) SOFTBANK INVESTMENT CORPORATION (head office: Minato-ku, Tokyo; president &CEO: Yoshitaka Kitao) as managing partner of SOFTBANK CONTENTS FUND 2. Details of the Lawsuit and Amount in Damages Requested (1) Details of Lawsuit (i) Claim for a refund of the money SBAM received as a repayment of loansfurnished to MarketXT prior to the bankruptcy of MarketXT; (ii) Compensatory claim against damage caused by the alleged breach of fiduciaryduty of loyalty on the defendantfs side that allegedly prevented the plaintifffrom obtaining important information on E\* TRADE FINANCIAL Corp. (hereinafter "E*TRADE") in a transaction in which MarketXT sold its subsidiary to E\* TRADE; and, (iii) Compensatory claim against damage associated with the closedown ofMarketXT, Inc. (a subsidiary of MarketXT), based on the allegation that theclosedown is attributable to the defendant. (2) Amount in Damages RequestedExcess of $300 million This information is provided by RNS The company news service from the London Stock Exchange