Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Japan's Tepco gets slapped with new U.S. lawsuit over Fukushima

Published 24/08/2017, 09:46
© Reuters.  Japan's Tepco gets slapped with new U.S. lawsuit over Fukushima
9501
-

TOKYO (Reuters) - Tokyo Electric Power Co Holdings (T:9501) said on Thursday it has been hit with another lawsuit filed in a U.S. court seeking $5 billion for compensation over the 2011 Fukushima nuclear disaster, the second filed against the utility in a U.S. court.

The suit filed by 157 individuals is seeking that amount to set up a compensation fund for the costs of medical tests and treatment they say they need after efforts to support the recovery from the world's worst nuclear disaster since Chernobyl in 1986.

The utility, known as Tepco, is being sued regarding improper design, construction and maintenance, claiming compensation for physical, mental and economic damages, the company said in a statement.

A multi-plaintiff lawsuit was filed on Aug. 18, 2017, against Tokyo Electric Power Co and other parties in the Southern District Court in California, the legal information group Justia said on its website.

Tepco has been hit with more lawsuits than in any previous Japanese contamination suit over the meltdowns of three reactors at its Fukushima Daiichi plant north of Tokyo after a massive earthquake and tsunami in March 2011.

Radiation forced 160,000 people from their homes, many never to return, and destroyed businesses, fisheries and agriculture.

In June, a federal appeals court cleared the way for a group of U.S. military personnel to file a suit against Tepco over radiation exposure that they say occurred during recovery efforts on board the USS Ronald Reagan.

Tepco did not make clear whether the two suits involved the same plaintiffs but Justia has two cases listed.

Shareholders of Tepco are suing the utility's executives for a record 5.5 trillion yen (39.32 billion pounds) in compensation, in a long standing case.

The company's former chairman and other executives of the company appeared in court in June to answer charges of professional negligence, in the first criminal case after the meltdowns at the plant. They all pleaded not guilty.

The criminal and civil legal cases do not threaten financial ruin for Tepco, which is backstopped by Japanese taxpayers. The company faces nearly $150 million of costs to decommission the Fukushima plant and clean up the surrounding area, according to the latest government estimate.

Tepco shares fell nearly 1 percent on Thursday, in line with many of Japan's other utilities, before the company announced the lawsuit.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.