Olympus CEO resigns after allegations of illegal drug purchase, shares tumble

TOKYO (Reuters) -Japanese endoscope manufacturer Olympus Corp said on Monday that Chief Executive Stefan Kaufmann has stepped down after allegations he purchased illegal drugs, sending its shares sliding 6%.

Kaufmann, a German national who only took the helm in April last year, had been tasked with expanding its medical equipment business after preceding CEO Yasuo Takeuchi steered the company through years of asset sales.

Takeuchi will take on CEO duties again for the time being, Olympus said.

"Upon receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs ... Olympus, in consultation with outside legal counsel, immediately investigated the facts," the company said in a statement.

"Based on the results of the investigation, the Board of Directors unanimously determined that Mr. Stefan Kaufmann likely engaged in behaviours that were inconsistent with our global code of conduct, our core values, and our corporate culture."

Kaufmann, 56, was asked to offer his resignation and he complied, the statement said.

Reuters was unable to reach Kaufmann for comment.

Olympus' 6% tumble put the company's shares on track for their biggest one-day fall in nearly three months.

Over the last 12 months, the company's stock has jumped 35%, outperforming a 24% advance by the Nikkei 225 .

Olympus has had its fair share of corporate scandal.

Thirteen years ago, its first foreign CEO Michael Woodford exposed accounting fraud related to overpaying for acquisitions to hide losses.

Woodford was fired soon after his appointment and lost a battle to take control of Olympus.

Source: Investing.com