Oops — Olympus Fires President, Reaction Causes $3B Loss
1:17 pm, October 17th | by Hillary Reinsberg
Olympus fired the 51-year-old British Michael Woodford, just a few months into his gig with the Japanese company. It’s fishy as to why exactly Woodford got the ax, and that means that traders are worried — and stock prices have plummeted. As we said, a $3.2 billion loss. In just two trading sessions.
It looks like Olympus is accusing Woodford of leaking information to the media — another reason that stock probably plummeted. He could also be accused of false accounting, financial assistance and breaches of duties by the board, Bloomberg says. Again — not a good sign for the company.
Additionally, Reuters explains, it’s rare for Japanese companies to fire top execs. Interesting, huh? That too, set off an alarm for traders.