Block & Leviton LLP Investigates Olympus Corporation

BOSTON, Nov. 8, 2011 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com), a Boston-based law firm representing investors seeking to recover money lost due to investment fraud, is investigating possible securities fraud claims involving Olympus Corp. (TSE: 7733.T; OTC: OCPNY.PK) ("Olympus" or the "Company").

On October 14, 2011, Olympus's Board of Directors fired the Company's then-President and Chief Executive Officer, Michael Woodford, after Woodford attempted to force an inquiry into Olympus's acquisition of British medical device maker Gyrus in 2008.  At issue were the $687.0 million in advisory fees paid to a relatively obscure financial firm in relation to the acquisition.  The fees were approximately one-third of the $2.0 billion acquisition price, which is almost 30 times higher than normal.  

On November 8, 2011, the Company admitted to an accounting cover-up, stating that the advisory fees paid in connection with the Gyrus deal and other acquisitions were used to hide steep investment losses that began in approximately 1990.  Speaking at a press conference, the Company's President, Shuichi Takayama, confessed that "[w]e have conducted extremely improper accounting" and that "[o]ur previous statements were in error."

The Company's admission, released just prior to the opening of trading on the Tokyo Stock Exchange ("TSE"), where Olympus's common stock is traded, sent shares spiraling downward by 29% over the prior day's close to 734 yen (or $9.40).  The Company's American Depository Receipts ("ADRs") also plummeted on the news, losing 31% compared to the prior day's close of $13.72.  Since mid-October when Woodward's allegations first surfaced, the Company's stock has lost approximately 70% of its market value.  

Amidst the growing accounting scandal that could be one of the largest in corporate history, the TSE has indicated that the Company's shares could be de-listed.  In addition, the Japanese Securities and Exchange Surveillance Commission is said to be investigating along with the U.S. Federal Bureau of Investigation, and the U.S. Securities and Exchange Commission.

If you acquired Olympus's ADRs between November 19, 2007 (the date the Company announced its acquisition of Gyrus) and November 7, 2011 and would like to learn more about your legal options, you may contact Block & Leviton for more information.

Block & Leviton's lawyers have collectively been prosecuting securities cases on behalf of investors for over 40 years.

This notice may constitute attorney advertising.

SOURCE Block & Leviton LLP

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