News tagged with "olympus-scandal"

The former President and Chairman of Olympus who oversaw the financial mismanagement that has seen the company's value more than halved, has been arrested. Tsuyoshi Kikukawa and his former vice-president Hisashi Mori who has also been arrested, were only forced out of the company after ex-CEO Michael Woodford spoke out, saying he was removed for uncovering their actions. Company auditor Hideo Yamada and four bankers connected to the cover-up of billions of dollars-worth of investment losses were also arrested. (from Reuters)

Kyodo News International, a Japanese news service, is reporting that Olympus will introduce a 16MP camera based on its classic OM series. The news would tie-in with a recent Olympus press advert in the UK that highlighted the letters 'O' and 'M' in the text. The report suggests such a camera would sell for over ¥100,000 (around $1300) and feature 'high-speed autofocus and image stabilization functionality.' Meanwhile, Japanese financial newspaper Nikkei is reporting that Sony is considering investing in Olympus and forming a business alliance. Fujifilm which, like Olympus, has extensive medical interests is also rumored to be interested.

Former CEO Michael Woodford has issued a statement saying he will no longer seek to regain his position in the company. Woodford was removed by the company when he uncovered a financial cover-up aimed at hiding loses of over $1bn. He has subsequently campaigned to have the company's existing management board removed but has given up on the fight, having failed to win similar levels of support from Japanese shareholders as he received from overseas investors.

Offices and homes of executives connected to the Olympus accounting scandal have been raided by Japanese police. The move comes after a report commissioned by the company showed that losses of $1.7bn had been concealed for over a decade. However, the company did successfully file its amended accounts by the December 14th deadline imposed by the Japanese stock exchange to avoid being delisted. These restated accounts showed significantly reduced assets, and the company is now rumored to be planning to issue more shares in an attempt to raise money.

Legal action should be taken against the responsible members of a board of directors that was 'rotten to the core,' says the independant report into financial irregularities at Olympus. The report confirms the use of an elaborate scheme to move around $1.7 billion investment losses from the 1990s off the company's balance sheet. Those losses were then disguised as excessive transaction fees when Olympus bought other companies, and in write-downs on the value of newly purchased assets.

Olympus' former CEO Michael Woodford has resigned his position as director of the company and called for a shareholder meeting to dismiss the rest of the board. The company's share price had started to recover some of the 88% value it had lost in the weeks since Woodford was removed as CEO for highlighting unusual payments by the company (he remained a director). Since then the company has admitted using these payments to cover up losses on earlier investments. An independent committee established by the company has reported it has found no evidence of the rumored involvement of organized crime syndicates in the deals. However, three board members, including the President and Vice-President have resigned over the issue. (via Reuters)

Olympus's woes have deepened after the Tokyo Stock Exchange placed its shares 'under supervision' and warned of possible delisting. The news follows the admission that senior executives colluded for decades to hide investment losses from the market, and a subsequent statement from Olympus that it would not be able to submit its quarterly earnings report on schedule. The TSE has warned that the company will be delisted if the report is not submitted by 14th December, prompting a further fall in its shares which have now lost almost two-thirds of their value over the past month.

Olympus has dismissed its executive vice president after admitting concealing losses on investments. In the most serious revelation since the departure of former chief executive Michael Woodford, the company said that funds from previous acquisitions had been used to hide losses on securities investments since the 1990s. The news saw Olympus shares fall in value by up to 30% during Tuesday's trading.

Former Olympus CEO Michael Woodford has launched a scathing attack on the company, following his removal from his post. Olympus had said Woodford was removed from his post over a difference in strategic direction between him and the rest of the Board of Directors. In a frank interview with the Financial Times, Woodford calls this 'utter nonsense' and states his belief that his removal relates to an investigation he had commissioned, into unusual payments and his suggestion that the board's Chairman and Vice Chairman should stand down over the issue. In response to suggestions that Olympus may try to prosecute him for disclosing this information, Woodford says: 'Bring it on.'