Olympus risks being delisted from the Tokyo Stock Exchange because its ongoing investigation into financial malpractice has delayed the release of its business results.
The latest twist emerged earlier today when Olympus announced that it is not likely to meet the 14 November deadline required under financial regulations.
In a subsequent statement, the Tokyo Stock Exchange warned: ?If the Company does not submit the quarterly report within one month [from 14 November]? stock of the Company shall be delisted.?
Olympus held the first meeting of its Third Party Committee on 1 November and said it expects to file its second quarter results by 14 December.
The investigating panel, comprised of accountants and lawyers, discovered that the firm had been covering up losses in its accounts since the 1990s – broadening the scope of the probe which was initially intended to focus on fees paid to advisers in relation to past acquisitions.
News agency Bloomberg today reports that the Tokyo Prosecutor’s Office may take action against the firm for breaching securities laws in hiding its losses, and that ex-Olympus officials face ‘as long as 10 years in prison’ if found guilty of fraud.
BACKGROUND ARTICLES
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