OLYMPUS SUES EXECUTIVES
10 Jan, 2012
Olympus is seeking legal action against current and former executives related to the recent loss cover-up investigation at the company.
According to the BBC the Japanese technology giant is suing 19 current and former executives following a highly publicised accounting cover-up of $1.7bn (£1bn) in value.
The lawsuit was filed on 8th January and is seeking damages of up to 3.6bn yen ($46.8m; £30.3m).
The scandal first came to light following accusations from the former Olympus chief executive officer last month. Michael C. Woodford made accusations that over $1 billion was ‘siphoned’ through offshore funds, reports Bloomberg; allegations that have seriously affected Olympus’ stock value, causing it to drop by 70 per cent. In a statement from the company, Olympus said that an independent investigation discovered that bad investments that occurred in the 1990s were concealed by advisory fees and takeover payments.
The BBC reported that Olympus admitted hiding $1.5bn (£968m) worth of losses over a twenty year period.
According to Bloomberg, President Shuichi has said that Former Olympus Chairman Tsuyoshi Kikukawa, Executive Vice President Hisashi Mori and auditor Hideo Yamada were all involved in the cover up.
It has also recently been reported by Kyodo News that Shuichi Takayama, the current Olympus president will step down because of his involvement in the case.