Shareholders to Sue Suruga Bank Ex-Management Team

Economy Society

Tokyo, Nov. 14 (Jiji Press)--Shareholders of Suruga Bank <8358> are set to sue the Japanese regional bank's former management team, including former Chairman Mitsuyoshi Okano, over its real estate loan irregularities.

The derivative lawsuit will be filed with Shizuoka District Court by around mid-December to demand the former management team pay the bank damages for the losses caused by the irregularities, a lawyer group said Tuesday.

Current President Michio Arikuni, who was in the team, will also be among the defendants.

Shareholders who own real estate assets affected by the improper lending practices will be main plaintiffs. They claim that a suit the bank instituted against the former management team is insufficient, according to the lawyer group for such shareholders.

The size of compensation to be demanded will be decided based on the amount of the bank's reserves for possible losses from loans for real estate investments by depositors, the group said.

[Copyright The Jiji Press, Ltd.]

Jiji Press