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Jan 13
2012
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In an article headed "TEPCO shareholders to sue utility's directors for 5.5 tril. yen", 42 shareholders of Tokyo Electric Power Co. may sue the directors on their own for 5.5 trillion yen.
The stockholders contend that TEPCO calculated in 2008 that a tsunami of 15.7 meters could hit the nuclear power plant if a magnitude-8.3 quake occurred off Fukushima Prefecture, the board members failed to take countermeasures such as raising the height of tsunami barriers protecting the plant.
The tsunami that damaged the Fukushima was the result of a 9.0 earthquake.
The stockholders said that if they prevail, they will use the funds to compensate victims of the crisis.
While the stockholders' action may have to play out in court - did the board have any reason to suspect a stronger earthquake possible in the region? - the lesson for risk management practitioners is simple:
Article continues at http://johnglennmbci.blogspot.com/2012/01/erm-bc-coop
