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Toshiba facing record £39m fine over dodgy balance sheets

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Toshiba is facing a possible fine of 7.37bn yen ($60m, £39m) as a result of its recent accounting scandal.

The record fine comes after the company was caught overstating its profits by $1.3bn over seven years.

The Securities and Exchange Surveillance Commission (SESC) suggested the penalty, which would be the largest ever in Japan, to the Financial Services Agency (FSA).

The FSA still has to give its approval, but is expected to do so based upon previous examples.

And Toshiba’s woes don’t stop there. After the company’s share price plummeted in the wake of the accounting scandal, 50 shareholders decided to seek $2.45 in damages.

The lawsuit was filed on the same day as the fine was announced.

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The scandal initially broke after securities regulators found irregularities with Toshiba’s balance sheet earlier this year.

Six high-level executives resigned from the company in July, along with Chief Executive and President Hisao Tanaka.

Toshiba appointed an independent panel to oversee the investigation into the overstatement of operating profit.

The panel found that the company had overstated operating profit by 151.8bn yen ($1.22bn, £780m).

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