Olympus shares drop more than 5% after CEO resigns over drug charges | Real Time Headlines

Shares of Japanese camera giant Olympus Shares fell on Monday after the company announced that its chief executive had resigned over drug charges.

The stock fell 5.3% on the Tokyo Stock Exchange following news of Stefan Kaufmann’s resignation, according to London Stock Exchange Group (LSEG) data. Shares of Olympus are up 31.9% so far this year, outperforming Japan’s benchmark Nikkei 225 index, which is up 13.3%.

in a NoticeOlympus said it had received allegations of German nationals purchasing illegal drugs.

“Olympus, in consultation with outside legal counsel, immediately investigated the facts, submitted a report to the investigating authorities and is fully cooperating with their investigation,” the company said.

“Based on the results of the investigation, the Board of Directors unanimously determined that Mr. Stefan Kaufmann’s conduct may not be consistent with our global code of conduct, core values ​​and corporate culture.”

Kaufman, 56, who has worked at Olympus for two decades, agreed to a request to resign, the company added. He took over the company and worked to expand its medical device division last April Former CEO Yasuo Takeuchi was transferred to executive chairman.

Takeuchi will now return to the CEO role as the company considers Kaufman’s successor.

CNBC could not reach Kaufman for comment.

Olympus’s leadership has also been plagued by controversy over the years. In 2011, the company admit For decades, it used fraudulent accounting practices to hide investment losses. Scandal is revealed whistleblower The company’s former chief executive, Michael Woodford, and several former executives pleaded guilty to charges of falsifying the accounts.

Japan’s tough anti-drug laws put the careers of many foreign executives at risk. In 2015, a Toyota executive from the United States Resigned after her arrested It was later released in Japan on suspicion of illegally importing the painkiller oxycodone.