According to a press release dated November 14, 2011, the Company violated federal securities laws by falsely representing its finances for over five years and hid large losses by characterizing them in its financials as "fees" paid to investment advisers for work on corporate acquisitions.
The complaint alleges these false statements by the Company artificially inflated its stock price and investors suffered heavy losses after the Company disclosed the truth about its financial statements on November 7, 2011. Investors' American Depository Receipts dropped dramatically from $13.72 on November 7, 2011, the last day of the Class Period, to $9.05 on November 8, 2011, or 34%. The Company’s top executives resigned in what has become a financial scandal in Japan. Recently, on its webpage, the Company admitted discovering that it had been wrongfully "engaging in activities such as deferring the posting of losses on investment securities."
On September 24, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel.
On January 9, 2013, the United States District Court for the Eastern District of Pennsylvania ordered that the Clerk of Court shall remove the matter from civil suspense.
On January 15, 2013, Plaintiffs filed a Second Amended Complaint.
On June 7, 2013, the Plaintiffs filed a Third Amended Complaint.
On September 26, 2013, the parties filed a Stipulation agreeing to dismiss certain individual defendants.