Danny McCance 28 Apr 2017 12:07pm

Former Olympus bosses to pay back $529m

Six former Olympus executives have been forced to pay back a combined total of $529m to the company for their involvement in one of Japan’s largest corporate scandals, according to a report from the BBC

Olympus took action against ex-chairman of the Japanese electronics firm Tsuyoshi Kikukawa and 15 others, with a court in Tokyo finding Kikukawa and five others liable for the payments.

The scandal first came to light in 2011 when Olympus’ then chief executive, Michael Woodford, was sacked after just two weeks in his post for challenging the board over several large and obscure payments relating to acquisitions.

After being dismissed, Woodford then sued for unfair dismissal and later reached an out-of-court settlement in May 2012.

In 2013, Kikukawa pleaded guilty to falsifying Olympus’ accounts to cover up losses of £1.1bn. The cover-up was thought to have gone on for as long as 20 years.

The former chairman was charged for his role in scandal, along two other former executives, Hisashi Mori and Hideo Yamada. However, their sentences were suspended.

At the end of 2015, after a two-year investigation, the Serious Fraud Office (SFO) was forced to drop its case against Olympus.

At the time, the SFO announced that it could not prosecute individuals involved in this case because Japan does not extradite its nationals for investigation.