BOSTON, Nov. 8, 2011 /PRNewswire/ -- Block & Leviton
LLP (www.blockesq.com), a Boston-based law firm representing investors
seeking to recover money lost due to investment fraud, is
investigating possible securities fraud claims involving Olympus
Corp. (TSE: 7733.T; OTC: OCPNY.PK) ("Olympus" or the
"Company").
On October 14, 2011, Olympus's
Board of Directors fired the Company's then-President and Chief
Executive Officer, Michael Woodford,
after Woodford attempted to force an inquiry into Olympus's
acquisition of British medical device maker Gyrus in 2008. At
issue were the $687.0 million in
advisory fees paid to a relatively obscure financial firm in
relation to the acquisition. The fees were approximately
one-third of the $2.0 billion
acquisition price, which is almost 30 times higher than normal.
On November 8, 2011, the Company
admitted to an accounting cover-up, stating that the advisory fees
paid in connection with the Gyrus deal and other acquisitions were
used to hide steep investment losses that began in approximately
1990. Speaking at a press conference, the Company's
President, Shuichi Takayama,
confessed that "[w]e have conducted extremely improper accounting"
and that "[o]ur previous statements were in error."
The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange ("TSE"), where Olympus's common
stock is traded, sent shares spiraling downward by 29% over the
prior day's close to 734 yen (or
$9.40). The Company's American
Depository Receipts ("ADRs") also plummeted on the news, losing 31%
compared to the prior day's close of $13.72. Since mid-October when Woodward's
allegations first surfaced, the Company's stock has lost
approximately 70% of its market value.
Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed. In addition, the
Japanese Securities and Exchange Surveillance Commission is said to
be investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.
If you acquired Olympus's ADRs between November 19, 2007 (the date the Company announced
its acquisition of Gyrus) and November 7,
2011 and would like to learn more about your legal options,
you may contact Block & Leviton for more information.
Block & Leviton's lawyers have collectively been prosecuting
securities cases on behalf of investors for over 40 years.
This notice may constitute attorney advertising.
SOURCE Block & Leviton LLP