Olympus Admits to Using Acquisitions to Hide Decades of Losses, Stock Plunges

Olympus admitted today that its top executives used dubious acquisitions to sweep 20 years of massive losses under the carpet. At a press conference in Tokyo, new President Shuichi Takayama revealed that the 2008 acquisitions at the center of the company’s ongoing scandal were used to cover-up failed securities investments dating back to the early 1990s. Michael Woodford, the ex-CEO who brought the acquisitions to light, says that further inquiry is needed and that the company leadership needs to be purged:

This is a very big day. The big questions now are: who helped us – which outside companies? And what monies have they received? […] The position of the board and non-execs is untenable now.

The news immediately crushed Olympus’ stock, causing it to drop 29% in one day. The company has lost 70% of its market value since the scandal began in mid-October and is now facing major consequences — including the possibility of getting delisted from the Tokyo Stock Exchange.

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