Olympus (Japan)

Updated: December 18, 2014
Status: Ongoing Case
Labaton Sucharow is actively monitoring the progress of Japanese legal actions against the Japanese consumer electronics company Olympus. As liaison counsel, we have engaged in extensive independent research, including seeking advice from third party legal experts. Most recently, we have provided our clients with a comprehensive report detailing the case, the general securities litigation landscape in Japan, and our recommendations for our clients.

The case arises from a disclosure Olympus made on November 7, 2011, stating that it had been falsely representing its financial health to the markets and its investors by concealing serious losses incurred from as far back as the 1990's. After a whistleblower complaint by Olympus' CEO brought attention to exorbitant "advisory fees" being paid for several acquisitions, Olympus admitted that, since 1998, it had been engaging in a complex accounting scheme to hide massive losses on its balance sheet under the cover of legitimate acquisitions. Following these revelations, Olympus' stock lost almost 80 percent of its market capitalization. The Japanese government brought a criminal case against Olympus and several of its executives. On September 25, 2012, during the first day of the trial, Olympus and three of its former executives pleaded guilty.