Three former executives at Olympus Corp., including ex-chairman Tsuyoshi Kikukawa, and four others were arrested for suspected violation of Japan’s Financial Instruments and Exchange Act.
The camera maker is facing shareholder lawsuits and may be subject to further criminal investigation after admitting to a 13-year cover-up. The company restated past securities reports and took a $1.3 billion reduction in net assets in December.
The company inflated takeover costs of London-listed Gyrus Group Plc and three Japanese companies with the intention of boosting goodwill, according to the Dec. 6 panel report. Yamada and Mori planned to write down the goodwill over years to cancel out losses that were kept off Olympus’s balance sheet.