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Molex to pay $183M to settle Mizuho Bank lawsuit

LISLE, Ill. (AP) -- Electronic components and cables maker Molex will pay $183 million to settle a lawsuit with Japan's Mizuho Bank related to unauthorized loans.

Molex Inc. said Friday that it will take a third-quarter pre-tax charge of about $21 million to $23 million related to the settlement.

"We believe that continuing protracted and costly litigation with an uncertain outcome is not in our best interests," Molex CEO and Vice Chairman Martin Slark said in a statement.

As part of the settlement, Mizuho will dismiss the Tokyo District Court proceedings and release about $4.6 million that the bank has held since the lawsuit began in 2010.

Mizuho also agreed to release Molex from any future claims relating to the unauthorized loans and provisional attachments.

Molex, based in Lisle, Ill., had an accrued liability of $170.7 million and a contingent liability of $66.2 million with respect to the unauthorized loans as of Dec. 31.

The company's stock rose 14 cents to $28 in afternoon trading.