Sumitomo reaches out-of-court settlement on copper case.
The out-of-court settlement concerns a scandal in which Yasuo Hamanaka, a former Sumitomo trader, caused 2.6 billion dollars in losses in unauthorized copper trading over roughly 10 years.
The settlement of the class action lawsuits in California, filed by copper futures traders and other traders, will put an end to legal disputes stemming from the scandal.
Sumitomo, one of Japan's giant trading houses, agreed in May to pay fines to U.S. and British financial regulators to settle charges of illicit copper trading.
In connection with the latest settlement, Sumitomo will register an extraordinary loss of 17.5 billion yen on its results in the April-September first half of fiscal 1998.
This will bring Sumitomo's total losses from the case to 335.5 billion yen.
In March, Hamanaka was sentenced to eight years in prison for fraud and forgery related to copper trading. He has appealed the ruling.