Toshiba sues former executives

Dec 3, 2015

Toshiba HQ, TokyoThe OEM has launched a lawsuit against five former executives involved in an accounting scandal earlier this year.

Former Chief Executive Hisao Tanaka, who resigned in July after admitting he was aware of the profit inflation scandal, is facing an action for compensatory damages of ¥300 million ($2.4 million/€2.2 million), along with two former Chief Financial Officers and two other ex-Chief Executives, Economia reported.

The opening of the case at Tokyo District Court follows the publication of a report from the executive liability investigation committee, an independent panel, which found that the executives had been negligent.

Disciplinary measures are planned for another 26 employees who were involved, after it was reported last month that the accounting scandal is due to cost the company ¥90 billion ($731 million/€674 million) in operating losses.

A similar figure, ¥90.5 billion ($735 million/€678 million), was posted this week in operating losses for the second quarter of the year, compared to a profit of ¥115.1 billion ($935 million/€862 million) for last year.

Toshiba overstated its operating profit by nearly $2 billion (€1.8 billion) over the last seven years.

Search The News Archive