The Tokyo District Court rejected a lawsuit Monday filed by Sumitomo Trust & Banking Co. seeking compensation from UFJ Holdings Inc., now part of Mitsubishi UFJ Financial Group Inc., for scrapping the planned integration of the two banks' trust units.
The ruling is the first by a court to take up the issue of corporate liability and damages in connection with the cancellation of a contract for a large-scale merger and acquisition.
Sumitomo Trust claimed it lost some 230 billion yen in potential profit when the planned integration with UFJ was canceled. It sought 100 billion yen in compensation from UFJ.
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