Olympus Shares Plunge as Scandal Unfolds

November 9, 2011 | Zoltan Arva-Toth | Global | 3 Comments |
News image

Olympus’ stock tumbled 20% today after a 29% fall on Tuesday, in the wake of the company’s admission that it had paid over $1 billion to “advisors” to hide losses on securities investments over the course of the past 20 years. A report by Reuters has called the affair “the biggest corporate scandal to hit Japan since a series of scandals at brokerages in the 1990s”. Olympus’ largest shareholders are now worried that the 92-year-old company could be delisted from the Tokyo Stock Exchange.

The crisis broke out in October when the board of directors dismissed Chief Executive Officer Michael C. Woodford after he had commissioned an investigation into what seemed like “unusual payments” linked to a series of acquisitions made before his appointment. Since then, the company has lost more than 75 percent of its market value.



Tracker Pixel for Entry

Your Comments

3 Comments | Newest Oldest First | Post a Comment

#1 jaypee

just like a Greek tragedy , the "gods" at mt.Olympus can be as manipulative and corrupt as those in the upper echelons found in Japan

8:25 pm - Wednesday, November 9, 2011

#2 rob

I have been a great fan of Olympus in the analog era. I had the OM-2n and OM-4T systems.

They were struggling back then, to keep their head over the water while competing with Nikon and Canon, but at least they were a legitimate business that released some of the most interesting and innovative cameras and lenses of the time.

Olympus' "success story" in the digital era has seemed to me to be too good to be true. Turns out, I was right.

1:41 am - Friday, November 11, 2011

#3 Keith Black

I'm not surprised that this has happened as Rob pointed out, "O" was having a touch time trying to compete with Canon and Nikon. It's unfortunate that this has happened.

Losing 75% of your market share is a sign of death to come unless they have a serious plan to reorganize the company but that's unlikely to happen. I've seen miracles happen in business but this would be a bit much.

3:54 am - Monday, November 14, 2011