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Olympus Has Been Lying to Investors for Two Decades

Olympus, a major distributor of personal electronics (especially digital cameras), held a press conference today. The company has been doing well for the past 20 years considering the ups and downs of the market including several major acquisitions to their company over the last 8 years. While that all seems well and good, it is also a massive 1.5 billion dollar lie.

In October of this year, Olympus new CEO Michael Woodford was released from the company after only two weeks of work. When asked what the issue was, Mr. Woodford stated it was due to his concern over the financial situation at the company. Olympus stated it was due to Mr. Woodford’s management style not fitting with the company. Guess who was telling the truth?

Today, President Shuichi Takayama of Olympus stated he discovered the books for the company were grossly inaccurate. Apparently the company has been inflating their cost of operations including takeovers, such as the acquisition of medical equipment manufacturer Gyrus in 2008. This was all done to hide losses the company has been incurring for almost 20 years. While I understand the need to protect your company and those who work for it, but this is just plain pitiful.

It goes without saying the stock for the company dropped massively after this press announcement, 30% to be exact. Olympus has a very bleak future, but may be able to sell off some of their assets at the real value to survive this. Even if they do, trust in this company will take much, much longer to repair.

Source: Tech Crunch

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