Toshiba sues former executives over accounting scandal

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Tokyo (dpa) – Japan’s industrial conglomerate Toshiba said Saturday it had sued five former executives for damages over their alleged role in an accounting scandal.

The move comes after an independent investigative panel concluded that three former presidents, including Hisao Tanaka, and two ex-chief financial officers, should be held responsible for one of Japan’s worst corporate scandals in years.

The scandal-hit company said it was demanding the five men pay a total of 300 million yen (2.5 million dollars).

In July, then-president Tanaka and other executives were forced to step down to take responsibility for the scandal.

Toshiba said in September it had inflated its profits from fiscal 2008 to December 2014 by 224.8 billion yen in order to make money-losing businesses profitable.

Toshiba “expresses sincere apologies to our shareholders, customers, business partners and all other stakeholders for any concern or inconvenience caused by issues relating to the appropriateness of its accounting treatments,” the company said in a statement.

On Saturday, Toshiba posted an operating loss of 79.5 billion yen in the July-to-September period due mainly to slumping computer and television sectors, compared with an operating profit of 90.2 billion yen in the same period last year.

The company also booked a net profit of 49.5 billion yen for the quarter, up 38 per cent from a year earlier, while sales fell 4.5 per cent to 1.62 trillion yen.

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