Toshiba Being Sued for $399 Million for Accounting Irregularities
Toshiba Corporation of Tokyo, Japan, reports that it’s was being sued by 70 shareholders, foreign institutional investors, and individuals seeking damages of 43 billion yen related to inappropriate accounting.
Toshiba said it plans to book an additional provision for the year ended in March for the lawsuit.
To date, Toshiba has been sued by 26 groups and individuals since it first admitted to reporting inflated profits going back to 2008, with total damages of 108.4 billion yen ($1 billion U.S.) being sought.
Toshiba’s financial problems came to light in January 2017, when its U.S. nuclear unit, Westinghouse, began reporting it was in financial trouble. Westinghouse subsequently filed for U.S. bankruptcy protection, having suffered losses due to cost overruns at two nuclear projects in Georgia and South Carolina. Toshiba also recently stated that it will seek buyers for its memory-chip business to help stem its financial losses.
- June 2017: Toshiba Determined to Sell Memory-Chip Business Despite Hurdles
- May 2017: Toshiba Not Reporting Audited Full-Year Financial Results at Shareholders’ Meeting
- May 2017: Report: Toshiba Corp May be Considering Bankruptcy
- April 2017: Toshiba Splitting Off Four of its Companies into Wholly Owned Subsidiaries
- April 2017: TABS CEO Reassures Clients in Wake of Toshiba Corp. Difficulties
- April 2017: Toshiba Reports $5.9 Billion Loss, Warns of Ability to Continue as Going Concern