MIAMI, April 2, 2015 – Global securities litigation firm DRRT on behalf of institutional investors reaches 11 billion yen ($92 million) settlement with Olympus, Japan-based manufacturer of products such as imaging systems and cameras. The settlement, Japan’s largest of its kind, was announced on March 27, 2015 and ended litigation that followed a 2011 public disclosure of accounting fraud exposed by the companies’ former CEO Michael Woodford.
For several years prior to the 2011 disclosure, Olympus misrepresented its financial condition, falsified financial statements, periodic reports, other communications, and hid large operating and investment losses, artificially inflating its stock price, which lead to substantial investor losses.
DRRT broke new ground with an early, pre-judgement mediation and preliminary settlement in October 2013, however, the case faced significant cultural hurdles that stretched the settlement documentation process to this point.
Alexander Reus, DRRT Managing Partner, explains, “Once the fraud was exposed, we introduced the concept of Alternative Dispute Resolution to Olympus as a possible solution to resolving shareholder claims in the Japanese system.”
Reus adds, “This case demonstrates the importance of introducing and pursuing alternatives of loss recovery beyond U.S. courts. Providing the correct alternative is an integral strategy of global investor protection and leads to a successful outcome if done correctly, as shown in the Olympus case. Both sides are now relieved.”
DRRT is a Miami-based international law firm and litigation funder that assists global institutional investors with the recovery of losses resulting from misstatements by public companies through private securities actions, class actions, derivative suits, and other loss recovery methods. DRRT is active in 11 countries and currently handles cases of investor loss recovery exceeding $10 billion. For further information visit www.drrt.com or contact Lucian van Schlun (email@example.com) or Valentina Carratta (firstname.lastname@example.org).
See also: Law360 article Olympus To Pay Investors $92M Over Alleged Fraud (subscription-based) and blog post The Curse of Multi-Jurisdiction Litigation: A Problem for Everyone, Not Just Defendants.