Kanebo Ltd. announced Wednesday an internal probe has discovered the firm had a negative net worth on a consolidated basis for five years through fiscal 2003, some of which it failed to report, and plans are afoot to sue former management.

The length of time the firm had negative net worth violates Tokyo Stock Exchange listing rules.

The company said the firm also had a negative net worth for four consecutive years prior to fiscal 1999. They claimed former executives dressed up the company's consolidated net balance by roughly 200 billion yen in the past, making it one of the largest window-dressings by a nonfinancial firm in Japan.