Feeds

Banks slap Olympus with £160 MEEELLION lawsuit

Scandal hit camera maker just can't shake off its past

The essential guide to IT transformation

Just when it thought the dark days were behind it, camera purveyor Olympus has been slapped with a ¥28 billion (£160m) lawsuit from six trust banks over a long running accounting scandal.

In a brief note on the company’s website, Olympus said it had received notice from the banks’ lawyers that they are seeking ¥27.9bn in compensation for damages resulting from its “false statements for the purpose of deferring record losses” between 2000 and 2011.

The banks in question are Mitsubishi UFJ, Master Trust Bank of Japan, Japan Trustee Services Bank, Trust and Custody Services Bank, Nomura, and State Street.

The latest filing is the 16th lawsuit against Olympus, bringing the total value of claims against the venerable Japanese camera maker to a whopping ¥40bn (£233m), according to the FT.

The world began to cave in on Olympus when a British former CEO, Michael Woodford was sacked in 2011 just a fortnight after being voted in unanimously by the board.

Woodford had raised concerns, rightly as it turned out, about $687m (£450m) paid out in “fees” following the 2008 purchase British medical device manufacturer, the Gyrus Group.

Olympus later ‘fessed up to serious accounting fraud and last year three former execs were fined ¥700m (£4.6m) for their part in the scam.

However, the firm has since made a pretty good stab at recover, thanks in no small part to a ¥50bn ($642m) investment from Sony which will give the Playstation-maker a 10 per cent stake in the firm.

The firm has seen its share price just about reach pre-scandal levels, although the ¥11bn it said last year it has set aside to deal with the various lawsuits flung at it will be nowhere near enough to cover the financial fallout. ®

The essential guide to IT transformation

More from The Register

next story
GCHQ protesters stick it to British spooks ... by drinking urine
Activists told NOT to snap pics of staff at the concrete doughnut
Britain's housing crisis: What are we going to do about it?
Rent control: Better than bombs at destroying housing
What do you mean, I have to POST a PHYSICAL CHEQUE to get my gun licence?
Stop bitching about firearms fees - we need computerisation
Top beak: UK privacy law may be reconsidered because of social media
Rise of Twitter etc creates 'enormous challenges'
Redmond resists order to hand over overseas email
Court wanted peek as related to US investigation
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
NZ Justice Minister scalped as hacker leaks emails
Grab your popcorn: Subterfuge and slur disrupts election run up
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?