September 14, 2012
CEO Hideichi Kawasaki speaks on possibility following the Spanish unit’s responsibility in the company’s biggest share fall in 37 years.
Following “improper accounting” from the OEM’s Spanish unit which resulted in the most significant decline in shares in 37 years and forced OKI to postpone the announcement of its Q1 fiscal year financial results, OKI has fired the head of its Spanish unit and is considering legal action, reports Vision & Trends.
The scandal has resulted in a $401 million (€306 million) reduction of profits, due to “the overstatement, unrecognised debt and money set aside for potential uncollectable accounts at OKI Systems Iberica in the six years and three months through 30 June” according to a company statement.
President and CEO Hideichi Kawasaki has announced that the OEM is considering legal action and has formed a committee to discuss ways of preventing a similar scandal from developing again.
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