Olympus mulls plan to sue for damages
Source: Agencies |
January 9, 2012, Monday
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Print Edition
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SCANDAL-TAINTED Olympus Corp is considering suing current and former executives for compensation totaling about 90 billion yen (US$1.2 billion), while its new president is considering resigning, a source familiar with the matter said.
The endoscope maker is preparing a suit to help cover damages from a US$1.7 billion accounting fraud that has hit the 92-year-old firm's finances, market cap and reputation, the source said.
The suit may include current executives who failed to spot the 13-year cover-up or question exorbitant advisory fees made for acquisitions, he said.
Olympus said in a statement that it would announce the contents of any suit tomorrow. It declined to comment on whether its president Shuichi Takayama planned to quit.
Takayama, who took the helm of the camera maker in October, had resisted calls that he resign. He has said he was not involved with hiding losses, and that his first responsibility was to rebuild the business after the scandal wiped out 60 percent of its market capitalization.
But an external panel appointed by the firm named Takayama as one of six current board members in breach of fiduciary duty by allowing former chairman Tsuyoshi Kikukawa and others to thin out Olympus's assets, the source said.
Its main lender and major shareholder, Sumitomo Mitsui Financial Group, has backed existing management and its efforts to to shore up its finances.
The endoscope maker is preparing a suit to help cover damages from a US$1.7 billion accounting fraud that has hit the 92-year-old firm's finances, market cap and reputation, the source said.
The suit may include current executives who failed to spot the 13-year cover-up or question exorbitant advisory fees made for acquisitions, he said.
Olympus said in a statement that it would announce the contents of any suit tomorrow. It declined to comment on whether its president Shuichi Takayama planned to quit.
Takayama, who took the helm of the camera maker in October, had resisted calls that he resign. He has said he was not involved with hiding losses, and that his first responsibility was to rebuild the business after the scandal wiped out 60 percent of its market capitalization.
But an external panel appointed by the firm named Takayama as one of six current board members in breach of fiduciary duty by allowing former chairman Tsuyoshi Kikukawa and others to thin out Olympus's assets, the source said.
Its main lender and major shareholder, Sumitomo Mitsui Financial Group, has backed existing management and its efforts to to shore up its finances.
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