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Foreign investors sue Toshiba over accounting scandal

Thursday, October 13, 2016 - 09:52
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Toshiba Corp on Thursday said a group of investors had sued the company for 16.7 billion yen (S$224.81 million) in damages over its false profit statements, the largest single claim of compensation over the accounting scandal so far.

[TOKYO] Toshiba Corp on Thursday said a group of investors had sued the company for 16.7 billion yen (S$224.81 million) in damages over its false profit statements, the largest single claim of compensation over the accounting scandal so far.

Toshiba said 45 mainly foreign institutional investors filed a lawsuit in the Tokyo District Court. Toshiba was notified of the action on Wednesday.

The filling follows 15 other suits seeking a combined 15.3 billion yen in compensation for damages stemming from the US$1.3 billion accounting scandal last year, Toshiba said.

Japan Trustee Services Bank filed a suit against the company in August seeking 12 billion yen.

Toshiba last year admitted to reporting inflated profits going back to 2008.

REUTERS