• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Advertise
  • Subscribe

MassDevice

The Medical Device Business Journal — Medical Device News & Articles | MassDevice

  • Latest News
  • Technologies
    • Artificial Intelligence (AI)
    • Cardiovascular
    • Orthopedics
    • Neurological
    • Diabetes
    • Surgical Robotics
  • Business & Finance
    • Wall Street Beat
    • Earnings Reports
    • Funding Roundup
    • Mergers & Acquisitions
    • Initial Public Offering (IPO)
    • Legal News
    • Personnel Moves
    • Medtech 100 Stock Index
  • Regulatory & Compliance
    • Food & Drug Administration (FDA)
    • Recalls
    • 510(k)
    • Pre-Market Approval (PMA)
    • MDSAP
    • Clinical Trials
  • Special Content
    • Special Reports
    • In-Depth Coverage
    • DeviceTalks
  • Podcasts
    • MassDevice Fast Five
    • DeviceTalks Weekly
    • OEM Talks
      • AbbottTalks
      • Boston ScientificTalks
      • DeviceTalks AI
      • IntuitiveTalks
      • MedtechWOMEN Talks
      • MedtronicTalks
      • Neuro Innovation Talks
      • Ortho Innovation Talks
      • Structural Heart Talks
      • StrykerTalks
  • Resources
    • About MassDevice
    • DeviceTalks
    • Newsletter Signup
    • Leadership in Medtech
    • Manufacturers & Suppliers Search
    • MedTech100 Index
    • Videos
    • Webinars
    • Whitepapers
    • Voices
Home » Toshiba agrees to pay $60m fine in accounting scandal

Toshiba agrees to pay $60m fine in accounting scandal

December 17, 2015 By Brad Perriello

ToshibaToshiba (TYO:6502) said yesterday that it agreed to pay a $60 million fine assessed by Japanese regulators after a $1.3 billion accounting scandal broke earlier this year.

Ex-CEO Hisao Tanaka and 7 other senior Toshiba executives resigned July 21 after admitting that they cooked the books to show inflated profits. Toshiba later confirmed that it overstated profits going back to fiscal 2008/09 by some $1.29 billion (¥155 billion), reporting a -$314.6 million net loss (-¥37.8 billion) for the last financial year through March.

Japan’s securities watchdog recommended Dec. 7 that Toshiba be fined a record ¥7.37 billion (about $60 million), the same day a group of 50 investors leveled a lawsuit seeking ¥302 million ($2.5 million) in damages against the company.

“This is a grave incident, whose impact is large,” Kiyotaka Sasaki, secretary general at the Securities and Exchange Surveillance Commission said at a briefing. The watchdog had taken a new approach in its investigation, given Toshiba’s position as a global company and its importance in Japanese business, by going beyond fact-finding to determine what drove the company to illegal acts, Sasaki said.

Yesterday Toshiba said it admitted the “relevant facts” and would pony up the full amount of the fine.

“The company takes seriously the fact that the recommendation for issuance of an administrative monetary penalty payment order has been made with the highest penalty amount ever imposed, and again feels deep remorse and expresses its sincere apologies to shareholders, investors and all other stakeholders for any inconvenience and concern it may have caused them,” Toshiba said.

Toshiba was one of the 1st Japanese companies to adopt a U.S.-style board structure which, with more outside directors, is considered more transparent in terms of corporate governance. But Sasaki said Toshiba’s board failed to function as intended.

Toshiba has set aside around ¥8.4 billion ($68.5 million) to cover administrative penalties. The impact of the fine on its earnings is widely expected be minimal.

Sasaki declined to comment on whether the SESC would also file criminal charges against Toshiba’s former top officials. The company itself has sued 5 former executives, including 3 former chief executives, for mismanagement.

Earlier this week, Toshiba denied reports that it was looking to lay off as many as 7,000 workers and sell assets including Toshiba Medical Systems, but confirmed that it’s examining ways to restructure.

Material from Reuters was used in this report.

Filed Under: Wall Street Beat Tagged With: Toshiba

More recent news

  • Autonomix picks up key nerve ablation catheter patent
  • Affluent Medical can move to pivotal phase of artificial urinary sphincter study
  • Globus Medical announces $500M share repurchase program
  • Cook Medical warns of issue with angiographic catheter
  • Virtuoso Surgical reports first cases with robotic endoscopy system, plans FDA IDE submission

Primary Sidebar

“md
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest med device regulatory, business and technology news.

DeviceTalks Weekly

See More >

MEDTECH 100 Stock INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
MDO ad

Footer

MASSDEVICE MEDICAL NETWORK

DeviceTalks
Drug Delivery Business News
Medical Design & Outsourcing
Medical Tubing + Extrusion
Drug Discovery & Development
Pharmaceutical Processing World
MedTech 100 Index
R&D World
Medical Design Sourcing

DeviceTalks Webinars, Podcasts, & Discussions

Attend our Monthly Webinars
Listen to our Weekly Podcasts
Join our DeviceTalks Tuesdays Discussion

MASSDEVICE

Subscribe to MassDevice E-Newsletter
Advertise with us
About
Contact us

Copyright © 2025 · WTWH Media LLC and its licensors. All rights reserved.
The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media.

Privacy Policy