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Toshiba’s financial woes continue – about to be sued by trust banks

Trust banks preparing to sue Toshiba – report   http://www.channelnomics.com/channelnomics-us/news/3003570/trust-banks-preparing-to-sue-toshiba-report Vendor also preparing to sell part of its memory business, Scharon Harding, 30 Jan 17, Toshiba may be hit with lawsuits from Japanese trust banks that could total over 1 billion yen ($8.8 million) over the accounting scandal it endured in 2015, Reuters reports.

According to the report, Mitsubishi UFJ Trust and Banking Corp. said today it is getting ready to sue the Japanese vendor in the name of its clients’ pension funds after revelations the vendor had been exaggerating profits caused share prices to drop.

Reuters added that Sumitomo Mitsui Trust Bank Ltd and Mizuho Trust & Banking Co. are organizing “similar” lawsuits, according to anonymous sources.

News of the potential lawsuits comes three days after Toshiba announced plans to sell parts of its memory business, including its SSD business, by 31 Marcch. The move is an attempt to minimize damage from an upcoming writedown for its U.S. nuclear business that could reach billions, according to CNBC.

Toshiba is already facing a pile of cases in relation to findings that the company’s bookkeeping practices led to the overstating of profits by over 170 billion yen (about $1.4 billion) by 45 institutional investors for 16.7 billion yen ($146 million) and 15 Japanese entities totaling 15.3 billion yen ($134 million), Reuters said.

February 1, 2017 - Posted by Christina Macpherson | business and costs, Japan, Legal