Business

Former Takata employees accused of insider trading

JIJI

The Securities and Exchange Surveillance Commission has accused nine former employees of Takata Corp. of insider stock trading in connection with the firm’s bankruptcy.

The commission recommended Friday that the Financial Services Agency impose a total of ¥7.73 million in fines on the former Takata employees for violating the financial instruments and exchange law.

The former employees sold Takata shares after they learned that the company would announce its bankruptcy plan on June 26, 2017, and evaded losses totaling ¥7.39 million as a result, the SESC said.

Takata, which had controlled 20 percent of the global air bag market, fell into financial difficulty due to recalls mainly in the United States of its rupture-prone products. It left debts of over ¥1 trillion.

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