Olympus Corp announced on Monday that it has fired Chief Executive Stefan Kaufmann following allegations of illegal drug purchases. The news caused Olympus shares to drop by 6%.
Previous CEO Yasuo Takeuchi guided the company through years of asset sales. Kaufmann, a German national who took over in April last year, was then tasked with growing Olympus’ medical equipment division.
According to the business, Takeuchi, a 67-year-old director of Olympus, will temporarily return to his role as CEO.
“Upon receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs … Olympus, in consultation with outside legal counsel, immediately investigated the facts,” the business stated in a statement. It refused to provide information about the investigation’s specifics or the identity of the accuser.
“Based on the results of the investigation, the Board of Directors unanimously determined that Mr. Stefan Kaufmann likely engaged in behaviors that were inconsistent with our global code of conduct, our core values, and our corporate culture.”
According to the statement, Kaufmann complied with the board’s request for his departure.
Kaufmann could not be reached for comment by Reuters.
The Kyodo news agency claims Olympus consulted with the police about the situation. Citing an unnamed investigation source, it reported that police searched Kaufmann’s home in June but found no illegal drugs.
The Tokyo Metropolitan Police did not announce the information, according to a spokesman.
Shortly after Olympus received warning letters from the U.S. Food and Drug Administration about violations of quality system regulations and reporting requirements for endoscopes and related accessories, Kaufmann assumed the top position. Kaufmann is a 56-year-old veteran with more than 20 years of experience at the company.
According to a person who has worked with him and spoke on condition of anonymity, his two top priorities had been expanding the company’s core medtech business and resolving those regulatory concerns.
In a joint interview with Kaufmann in November 2022, Takeuchi told Reuters that Olympus was interested in transactions in digital technology and robotics after selling up its camera, voice recorder, and microscope businesses.
Shares of Olympus fell 6% on Monday, setting the company up for its largest one-day decline in almost three months. The company’s stock has increased 16% since Kaufmann took over as CEO, trailing the Nikkei 225’s 38% increase.
Olympus has seen a number of business scandals.
Michael Woodford, the company’s first foreign CEO, revealed accounting fraud involving overpaying for acquisitions in order to conceal losses thirteen years ago.
Woodford lost a battle to seize control of Olympus and was dismissed shortly after his appointment.
American executive Julie Hamp of Toyota Motor was detained in Japan in 2015 on suspicion of bringing painkiller Oxycodone into the nation illegally. Later, she was set free.
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