Board Members Quit Olympus After Stock Price Falls On Scandal

Stock prices of the Japanese camera manufacturer Olympus rallied following resignation of 3 board members prior to today’s meeting.

The company’s stock price rose by over 25% in early Friday trading following former Auditor Hideo Yamada, former executive Vice President Hisashi Mori as well as former Chairman Tsuyoshi Kikukawa tendered their resignations. The company asserts that the trio assisted fake payments in order to cover up $1.4 billion in losses.

The resignations are a part of a series of events in a scam which started on 14th October with sacking of chief executive, Michael Woodford. A subsequent inquiry which investigated the doubtful dealings was the main cause of sharp decline in price of shares of the medical equipment as well as camera manufacturer. During the last 6 weeks, the stock price has plunged by over 80% which has threatened that the company might be delisted from the Tokyo Stock Exchange.

Woodford returned to Tokyo on Thursday to have a meeting with Japanese prosecutors. He was expected to have a meeting with Olympus board which fired him.Woodford asserted that he was victimized since he demanded roughly $1.4 billion for doubtful transaction fees.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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