Three former executives at Olympus Corp., including ex-chairmanTsuyoshi Kikukawa, and four others were arrested for suspectedviolation of Japan's Financial Instruments and Exchange Act.

The camera maker is facing shareholder lawsuits and may besubject to further criminal investigation after admitting to a13-year cover-up. The company restated past securities reports andtook a $1.3 billion reduction in net assets in December.

Olympus's Tokyo headquarters and its affiliated offices wereraided in December by prosecutors after the company said Kikukawaand two others colluded to hide investment losses from the 1990s.The stock has plunged 49 percent since the Oct. 14 dismissal of itsfirst non-Japanese president, Michael Woodford, who later publiclyquestioned inflated takeover costs.

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