Rakuten, Inc. has confirmed a class action lawsuit has been filed against its consolidated subsidiary Buy.com Inc. (U.S.). As of February 14, neither Rakuten, Inc. nor Buy.com Inc. have been served by the Plaintiffs notice of the complaint related to the lawsuit.
1. Court and date of filing
(i) Court: United States District Court, Central District of California – Southern Division
(ii) Date: February 5, 2013 (PST)
3. Case summary
Plaintiff represents a class of Buy.com customers who made credit card purchases and were required to provide a telephone number on the Buy.com website during the 12 months prior to the filing date. The plaintiff claims requiring the listing of a phone number in a customer credit card transaction violates the Song-Beverly Credit Card Act. In addition, the plaintiff believes penalties could exceed US$ 500 million.
Rakuten, Inc. believes the plaintiff’s claims are groundless and should be rejected. Buy.com Inc. (U.S.) will properly defend itself in the U.S. courts. We do not expect this class action will affect the earnings of the Rakuten Group. However, we will immediately make a timely disclosure when required.
In addition, Rakuten, Inc. and its subsidiaries do not disclose earnings forecasts as these business operations include domestic and global Internet service businesses characterized by high uncertainty, and finance related businesses such as securities business whose results depend heavily on highly volatile markets. This precludes us from making earnings forecasts.
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