Toshiba facing nearly $1bn in claims from accounting scandal
Beleaguered Japanese company hit with lawsuit No. 26 and counting
TOKYO -- Toshiba disclosed Tuesday a lawsuit from 70 plaintiffs, including foreign banks and institutional investors, that seek about 43.9 billion yen ($399 million) for losses they blame on the dodgy accounting that came to light in 2015.
The complaint was filed with the Tokyo District Court on April 3 and served Monday, the company said. The Japanese group has now been hit with 26 suits from institutional and individual investors relating to the scandal, demanding a total of around 108.4 billion yen in compensatory damages. This creates a potential stumbling block to efforts to repair the damage from losses in its U.S. nuclear power business.
Toshiba has so far reflected the impact of litigation costs on its estimated fiscal 2016 results at around 40 billion yen. The figure includes a portion from the just-revealed complaint, of which the company received advance notice from some of the plaintiffs.
With the list having grown, "provisions for a reasonably estimable amount" of liabilities will be made in fiscal 2016 results, Toshiba said.