Business / Corporate

Japan Trustee Services Bank sues Toshiba for ¥12 billion over accounting scandal

KYODO

Japan Trustee Services Bank is seeking ¥11.99 billion in damages from Toshiba Corp. over the industrial giant’s accounting scandal, Toshiba announced Friday.

In a damages suit filed on Aug. 9 with the Tokyo District Court, the bank said it suffered financial damage because the scandal damaged Toshiba’s share price. The bank handles securities processing services for pension and investment funds.

“We will respond appropriately, taking the bank’s claim into consideration,” Toshiba said. It plans to allocate funds to handle the lawsuit.

Toshiba said it does not know what impact the accounting scandal will have on earnings for the business year ending next March but said it will make an announcement if it needs to revise its outlook.

Toshiba revealed last year that its profits reports had long been inflated. The maker of chips and nuclear plants has since undergone a broad restructuring of unprofitable businesses and cut jobs globally.

So far, 11 lawsuits filed in Japan by individual shareholders and Japan Trustee Services Bank are demanding ¥2.78 billion in damages over the scandal.