Announcement of the Service of ComplaintJun. 25, 2004
SOTBANK CORP. announces that SOFTBANK CORP. and its wholly-owned subsidiary SOFTBANK FINANCE CORPORATION (Head office: Minato-ku, Tokyo; President & CEO: Yoshitaka Kitao; “SBF”) have been served with a complaint from MarketXT Holdings Corp. (“MarketXT,” formerly called T-Corp.) and its wholly-owned subsidiary, MarketXT, Inc., in regard to a lawsuit filed with the United States District Court, Southern District of New York, on April 8, 2004.
The lawsuit is attributed to disputes relating to payment for a transaction (“Transaction”) in which MarketXT sold its subsidiaries to E*TRADE FINANCIAL Corp.("E*TRADE") in June, 2002. Both SOFTBANK CORP. and SBF were not parties to the Transaction and have nothing to do with the Transaction.
The complaint names SOFTBANK CORP. and SBF due primarily to secondment of directors from SOFTBANK CORP. to E*TRADE, and from SBF to MarketXT as around June, 2002.
MarketXT and MarketXT, Inc. are making claims against SOFTBANK CORP. and SBF alleging participation in various misconduct. However, that allegation is not supported by the facts, and has no reasonable relation to any damages. Therefore, SOFTBANK CORP. and SBF strongly believe that neither company has legal responsibility to MarketXT and MarketXT, Inc.
SOFTBANK CORP. has consulted with legal and accounting experts, and judged that no probability of financial loss will occurred from this lawsuit.
1. The Cause of the Lawsuit, etc.
In June, 2002, MarketXT sold off its subsidiaries (Tradescape Momentum Holdings Inc., Tradescape Technology Holdings, Inc., Momentum Securities, LLC) to E*TRADE. Disputes occurred between MarketXT and E*TRADE, the parties to the Transaction, in regard to payments therefor. Consequently, MarketXT and MarketXT, Inc. have filed this suit against SOFTBANK CORP. and SBF as well as E*TRADE.
MarketXT Holdings Corp. and MarketXT, Inc.
(2) Principal place of business
712 Fifth Avenue, New York, New York, the United States
3. The Details of the Lawsuit and the Amount of the Damages Requested
(1) The Details of the Lawsuit
MarketXT alleges that there were misconducts related to (i) the payment for the Transaction and (ii) the closing-down of MarketXT, Inc.. Through secondment of outside directors to MarketXT and E*TRADE, SOFTBANK CORP. and SBF are claimed to have joined the misconducts and are sued as defendants. However, these claims are without merit at all.
(2) The Amount of the Damages Requested
Excess of $1.5 billion in compensatory damages (as well as unspecified punitive damages)
(Aggregate sum of damages sought against E*TRADE, SOFTBANK CORP. SBF and all parties concerned)
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