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Olympus Sues Execs Over Loss Coverup

Mon, 01/09/2012 - 8:27am

TOKYO, Jan. 9 (Kyodo) — Scandal-hit Olympus Corp. has filed a damages suit against former Chairman and President Tsuyoshi Kikukawa as well as current and former executives over the concealment of massive investment losses, sources close to the matter said Monday.

The camera and endoscope maker is believed to be seeking several billion yen in damages. A panel set up by Olympus to investigate the scandal had urged the company to seek more than 90 billion yen from over 10 people, the sources said.

Executives who have not agreed to pay compensation are subject to the suit filed with the Tokyo District Court, they said.

The report by the panel of three lawyers, which Olympus said Sunday it plans to make public Tuesday, concluded that more than 10 people were responsible for the accounting scandal and Olympus should seek damages of over 90 billion yen from them.

The panel found Kikukawa and two others -- former executive vice president Hisashi Mori and former auditor Hideo Yamada -- were primarily responsible and proposed Olympus ask them to pay a total of around 90 billion yen.

It also found President Shuichi Takayama and four of the company's other 11 board members, as well as an external board member, failed in their supervisory duties, and said they and former executives should pay a total of several billion yen.

Takayama and other serving board members are expected to step down by the end of this month to take responsibility for the scandal.

Olympus has admitted to concealing 117.7 billion yen in investment losses dating back to the 1990s.

 

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