The New York Times is reporting this morning that three former leaders of Olympus Corp. were arrested by prosecutors yesterday in Tokyo, "on suspicion of violating the Financial Instruments and Exchange Law." Taken into custody were Tsuyoshi Kikukawa, Hisashi Mori, and Hideo Yamada. Although all three have resigned, Kikukawa was the President and Chairman, Mori Executive VP, and Yamada the coporate auditor when the scandal, which has had repercussions nationally in Japan, broke sensationally last October. Also arrested were several bankers implicated in the complex cover-up of large losses dating back decades.
We haven't reported every development of the Olympus case here, because I haven't wanted to turn TOP into "the Olympus scandal blog." However it looks like the new beginning is slated for a shareholders meeting on April 20th, when a number of Board members will step down and a new Chairman will be named.
...Unfortunately it also looks like the endoscope side of Olympus's business is sound, whereas it's the camera division that's being blamed for corporate losses. That means the camera side is exposed to possible, er, changes during restructuring. We'll keep an eye on the company's progress and plans in the months to come.
(Thanks to Rob Atkins)
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