The Settlement between HS and Indirect Purchaser Plaintiffs for the US antitrust action will be submitted to the Court for approval
Holy Stone Enterprise Co., Ltd.(“HSE”), Holy Stone Holdings Co., Ltd.(“HS Holdings”), prior Japan subsidiary of HS Holdings, Holy Stone Polytech Co., Ltd. (“HPC”), the US sub-subsidiary of HS Holdings, Milestone Global Technology, Inc. (“Milestone”), and Milestone’s DBA company, Holy Stone International, (“DBA HS”)，HSE, HS Holdings, HPC, Milestone and DBA HS are referred to as “Holy Stone”collectively. Holy Stone reached the Settlement Agreement with Indirect Purchaser Plaintiffs group for the US antitrust action (“IPPs”) involved by prior Japan Subsidiary HPC today and will submit the Settlement Agreement to the US Court for approval. If the US court approves the Settlement Agreement, Holy Stone will pay US$2 million to IPPs with a two-year installment in accordance with the Settlement Agreement.
HSE, HS Holdings, Milestone and DBA HS had not been involved and were not aware of those relevant alleged antitrust actions. After consulting with legal counsel teams with an overall assessment, Holy Stone accepted the settlement agreement for the best interest of Holy Stone.
Based on the accounting conservatism principle, the above mentioned settlement fee amount has already been recorded in 2017. The payment of settlement fee would thus have no material impact to HSE’s financial and business matters.