Sanyo Under Investigation for Securities Fraud
Japan's Sanyo Electric Co. revealed that it was being investigated for securities violations after allegations that it underestimated losses. Sanyo is said to be "fully cooperating" with the Japanese authorities. The Kyodo News Agency and Asahi Shimbun said that Sanyo could have underestimated $1.57 billion in losses in the fiscal year that ended in March 2004. The false reporting would have meant Sanyo had made a profit when, in fact, they actually had posted losses.
A Securities and Exchange Surveillance Commission spokesman said that their agency could not comment on cases that were in progress. For the fiscal year that ended in March 2004, Sanyo reaped a net profit of $11.6 million, followed by a net loss of $1.13 billion in 2005 and a loss of $1.7 billion in 2006.
Related Links:
Legal View: Securities
Sanyo Shares Plummet on News of Investigation
Sanyo Stocks Plunge as Probe Starts
Sanyo Probed Over False Earnings Reported
Sanyo Raises Capital for Restructuring Plan