The Tokyo District Court on Thursday rejected a demand by former Sogo Co. Chairman Hiroo Mizushima that Sogo and its creditor, Industrial Bank of Japan, return shares of stock he voluntarily gave to the firm free of charge.
Presiding Judge Hisaki Kobayashi dismissed Mizushima's claim because the company's court-sponsored rehabilitation plan, which was agreed to in February, reduced its capital and wiped out the shares.
Kobayashi also said that Mizushima, 89, is no longer a Sogo shareholder regardless of the validity of the stock transfer.