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November 9, 2015

Toshiba sues former execs over $1.3bn accounting scandal

News: The company is seeking damages totalling $2.4m.

By CBR Staff Writer

Toshiba has sued five former executives for damages over their alleged roles in the widely reported $1.3bn accounting scandal.

The company is seeking damages totalling $2.4m from previous CEO Hisao Tanaka, his two predecessors and two former chief financial officers.

The case forced Tanaka and seven other top executives to resign earlier this year. An independent panel has found that the executives were negligent over accounting practices.

Toshiba has since apologised to its shareholders, customers, business partners and all other stakeholders for any concern or inconvenience caused by issues relating to accounting irregularities.

Meanwhile, Toshiba posted an operating loss of JPY79.5bn for the second quarter of 2015, compared to an operation profit of JPY90.2bn a year earlier.

Net income increased 38% to JPY49.6bn, compared to JPY35.9bn in the year-ago period.

The company said that even though the community solutions segment recorded higher sales, the electronic devices & components segment experienced lower sales and the lifestyle products & services segment reported a significant sales decrease due to a shift in focus to redefined sales territories.

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Last month, Toshiba unveiled a plan to divest its imaging sensor business to Sony. The deal includes Toshiba’s semiconductor fabrication plants, equipment and related assets in Oita Prefecture, Japan.


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