Case Spotlight: Toshiba Corporation

By Allison Gosman, Senior Marketing Specialist, Financial Recovery Technologies

CompanyToshiba Corporation
JurisdictionJapan
ExchangeTYO
IndustryConglomerate
ClaimsSecurities fraud related to accounting improprieties

CASE BACKGROUND

In July 2015, Toshiba acknowledged that it had artificially inflated its pre-tax profits over a period of seven years starting in 2008. It has been established that 25% of reported profits were fictitious from April 1, 2008 through May 8, 2015 (i.e., the last trading day preceding the announcement made by Toshiba after the market was closed that it found some accounting irregularities and that accounts may have to be restated).

This scandal represents an overstatement of profit by $1.2 billion where in the CEO resigned and eight of the 16 board members.

DETERMINING ELIGIBILITY & COSTS

According to DRRT, Miami-based investment recovery firm who is working in partnership with local counsel, Toshiba first filed a complaint on June 22, 2016, for a group of 45 institutional investors totaling nearly $150 million in damages. A second complaint was filed on April 3, 2017, claiming approximately $400 million on behalf of 70 international and Japanese institutional investors. On June 13, 2017, the court consolidated both actions, which will now proceed concurrently.

Due to the Statute of Limitations expiring on April 3, 2018, along with increased investor interest, DRRT plans on filing a third complaint on behalf of investors who did not have the opportunity to join the initial action. This will be shareholders’ last opportunity to join this action for a potential recovery against Toshiba.

Learn More

FRT has issued the following alerts to FRT Global Group Litigation clients:

  • Action Alert: February 20, 2018
  • Update Alert: November 2016
  • Full Alert: May 5, 2016

For more information on this case or FRT Global Group Litigation service, please contact us at learnmore@frtservices.com.

About FRT

U.S. CLAIMS  I  GLOBAL GROUP LITIGATION  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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