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Toshiba Hit With $900 Million in Lawsuits Over 2015 Scandal

The lawsuits involve both individuals and institutional investors, including Japan’s national pension fund, the world’s biggest.

AFP Relaxnews

Updated:June 14, 2017, 12:03 PM IST
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Toshiba Hit With $900 Million in Lawsuits Over 2015 Scandal
Western Digital Corp may join a consortium of Japanese government money and KKR & Co LP to bid for Toshiba Corp's chip unit. (Image: Reuters)
Toshiba said on Tuesday it is had been hit with two dozen lawsuits demanding over $900 million in damages from a 2015 profit-padding scandal that badly damaged its reputation and shredded its share price.

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The eye-popping total was revealed in a statement to announce a new lawsuit had been filed against one of Japan’s best-known companies totalling 43.9 billion yen ($399 million). Including the latest action filed this week, Toshiba said it was facing 26 separate legal claims for a total of 108.4 billion yen.

The lawsuits involve both individuals and institutional investors, including Japan’s national pension fund, the world’s biggest.

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They are seeking damages after Toshiba’s share price tanked some 40% in the wake of the revelations two years ago that top executives had pressured underlings to cover up weak results after the 2008 global financial crisis.

Best known for televisions and electronics, Toshiba’s vast business was dented by the worldwide crisis while the 2011 Fukushima disaster squashed demand for atomic power at home in a big blow to the firm’s key nuclear division.

Top executives complained of “shameful results” that could not be made public, and a company hired panel in 2015 found they masterminded a years-long scheme to hide the poor earnings.

It sparked the resignation of Toshiba’s president and a string of other top executives.
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