Olympus which earlier confirmed that it’s suing its own president, Shuichi Takayama and 18 other previous and current executives over the accounting fraud to conceal their $1.7 billion in losses over which the current board members have agreed to resign, allowing the investors of company to vote on new management.
With the raid over the Olympus’s HQ by Japanese prosecutors, company’s former chairman and six others have been arrested. Tsuyoshi Kikukawa, one of the 18 executives sued by Olympus over the scandal last month, along with him the former company auditor Hideo Yamada and former executive vice president Hisashi Mori, who were also arrested with four other members of staff.
Kikukawa is accused of violating the Financial Instruments and Exchange Act by covering up $1.7 billion in losses, which were exposed in part by the ex-company president and CEO Michael Woodford. The stock has seen a hinge-up by 48 percent since the October 14 dismissal of its non- Japanese president, Michael Woodford, who later publicly questioned inflated takeover costs.
The incident definitely showing up a huge major turned back for the camera maker company which not only the 18 sued employees but also the whole of the company’s makeover turning to default stage as the full extent of the scandal becomes clear.
