Olympus sued for $273 million over accounting scandal
Reuters reports six Japanese trust banks have filed a lawsuit against Olympus for ¥27.9bn (around $273 million) in damages relating to the company’s false financial statements.
According to the report this is the fifth publicly recognized lawsuit stemming from a 2011 accounting scandal. Olympus said it would set aside ¥17bn ($166.49m) to settle three of those five suits.
The banks include: Mitsubishi UFJ Trust & Banking Corp., Master Trust Bank of Japan Ltd., Japan Trustee Services Bank Ltd., Trust & Custody Services Bank Ltd., Nomura Trust & Banking Co., and State Street Trust & Banking Co.
In 2011 Olympus was forced into the limelight when former Chief Executive Michael Woodford revealed the company had covered up more than $1.7 billion of losses and other business fees through illegal accounting practices.
The investigation into this scandal grew into one of the largest in Japan’s history, resulting in jail time for three former Olympus executives, including former chairman Tsuyoshi Kikukawa. Olympus was fined ¥700m ($7m) for violating securities laws.
For more details, read the original Reuters story.