Foreign investors sue
Toshiba over accounting scandal
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[October 13, 2016]
(Reuters) - A group of investors, mostly foreign institutions, are suing
Toshiba Corp in a Tokyo court for 16.7 billion yen ($162.3 million) in
damages, over a $1.3 billion accounting scandal uncovered last year.
Toshiba said in a statement on Thursday that the 45 unnamed shareholders
were seeking compensation for damages caused by its "inappropriate
accounting". It will take an unspecified provision to cover any eventual
payout, Toshiba said.
The laptops-to-nuclear conglomerate has been sued by 15 groups and
individuals since it first admitted to reporting inflated profits going
back to 2008, including Japan's public pension fund. GPIF, the world's
biggest pension fund, has been shifting into shares to attempt to boost
Thursday's case, however, is the largest - the remaining suits are
seeking a combined 15.3 billion yen in compensation.
Toshiba is still overcoming the reputational and share price hit of an
investigation last year that found widespread accounting errors
throughout its sprawling business, blaming a corporate culture in which
employees found it difficult to question their superiors.
High profile Japanese companies from Olympus to Fukushima Daichi nuclear
power plant operator Tokyo Electric Power Co (Tepco) have faced
shareholder damages suits over the years.
Tepco shareholders in 2012 sued the utility's executives for a record
5.5 trillion yen. That case, still ongoing, accused former Tepco
directors of ignoring multiple warnings of a possible tsunami and of
failing to prepare for a severe accident.
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The logo of Toshiba Corp is seen behind trees at its headquarters in
Tokyo, Japan October 1, 2015. REUTERS/Toru Hanai/File Photo
2008, five former executives of Janome Sewing Machine Co were ordered by a court
to pay 58.3 billion yen compensation to the company, local media reported at the
time, saying it was the biggest compensation pay out to date.
Toshiba shares rose on the day, trading up 3.2 percent at 366.4 yen.
(Reporting by Junko Fujita and Osamu Tsukimori; Editing by Stephen Coates and
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