The innovator and world leading in pioneering high technology Toshiba is facing a lawsuit against Japanese trust banks over 2015 accounting scandal. The company’s shares plummets a total of 5.8 percent in early Monday trading as news about the legal action spreads in local newspapers like a wildfire.
Reports came flooding that a handful of Japanese trust banks, including the result of the Mitsubishi Trust and Banking Corporation and UFJ Trust Bank Limited Mitsubishi UFJ Trust and Banking Corporation, are in the process of suing Toshiba after the 2015 accounting transgression that lifted the company’s share price and causing an unexpected turnaround. Mitsubishi YFJ Trust and Banking Corp is looking to get around 1 billion yen or something around $8.7 million in damages dealt on behalf of its client pension funds after Toshiba’s shares slid in the wake of another accounting scandal several years ago.
More Banks To Sue Toshiba
Some other banks such as Sumitomo Mitsui Trust Bank Ltd and Mizuho Trust & Banking CO are also composing to sue the tech giant, although representatives from the bank decline any further comments. The news is a follow-up to the struggling company’s decision to sell the minority stake in its memory chip business.
Chairman Shigenori Steps Down
According to local media, the company’s Chairman Shigenori Shiga is expected to abdicate from its office and take the full responsibility for the charges that are going to creep in, which is going to be around $6 billion. Mizuho Securities’ Takeshi Tanaka noted that “No explanations were offered as to the ultimate scale of the impairment losses to be recorded in the business or how the company intends to control risk going forward,”
Toshiba Sells More Assets
Last Friday, the tech conglomerate announced that it will sell more assets in an attempt to save its balance sheet facing multibillion-dollar writedowns. According to the company’s president, Satoshi Tsunakawa, the company is eyeing on selling several of its business such as; shareholdings, real estate, and other assets to come up with capital, “We will keep considering all options as needed and promptly, and take all necessary steps,” the president said last Friday.
Toshiba is expecting something around 700 billion yen of $6 billion writedowns for its nuclear units, and extra money to secure the support of lenders. The tech company also announced that they are whole fully looking to give as much as 20 percent of its computer-chip unit. The assets are expected to cut the bleeding from the nuclear losses, while Deutsche Bank AG experts noted that sale is more likely to bring in around 200 billion yen only.
The company’s remaining assets are as follows; Toshiba Information Systems, which conducts and sells chip design and software integration services which have been around since late 1968 and Toshiba Lighting & Technology Corp, a century-old business that produces light-bulb. produces light-bulb.
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