Olympus fires CEO after allegations he bought illegal drugs — sending shares down 6%

Japanese endoscope manufacturer Olympus said Monday it has sacked Chief Executive Stefan Kaufmann aft an allegation that he had purchased forbidden drugs, sending its shares sliding 6%.

Kaufmann, a German nationalist who only took nan helm successful April past year, had been tasked pinch expanding Olympus’ aesculapian instrumentality business aft preceding CEO Yasuo Takeuchi steered nan institution done years of plus sales.

Takeuchi, 67 and an Olympus director, will return connected CEO duties again for nan clip being, nan institution said.

“Upon receiving an allegation that Mr. Stefan Kaufmann had purchased forbidden narcotics … Olympus, successful consultation pinch extracurricular ineligible counsel, instantly investigated nan facts,” nan institution said successful a statement. It declined to remark connected who made nan allegation aliases specifications of nan investigation.

“Based connected nan results of nan investigation, nan Board of Directors unanimously wished that Mr. Stefan Kaufmann apt engaged successful behaviors that were inconsistent pinch our world codification of conduct, our halfway values, and our firm culture.”

The committee asked for his resignation and Kaufmann complied, nan connection said.

Reuters was incapable to scope Kaufmann for comment.

According to Kyodo news agency, Olympus consulted nan constabulary astir nan matter. Police searched Kaufmann’s location successful June but recovered nary forbidden drugs, it reported, citing an unidentified investigative source.

A spokesperson for nan Tokyo metropolitan constabulary said nan accusation was not thing it had announced.

Kaufmann, a 56-year-old seasoned of much than 20 years at Olympus, took connected nan apical occupation soon aft nan institution had received informing letters from nan Food and Drug Administration astir violations related to reporting requirements and value strategy regulations for endoscopes and related accessories.

His 2 main priorities had been addressing those regulatory issues and increasing nan firm’s halfway medtech business, according to a personification who has worked pinch him and said connected information of anonymity.

Olympus was interested successful deals in integer exertion and robotics aft trading disconnected its camera, sound recorder and microscope businesses, Takeuchi told Reuters successful a November 2022 associated question and reply pinch Kaufmann.

Olympus’ 6% tumble connected Monday was nan shares’ biggest one-day autumn successful astir 3 months. Since Kaufmann became CEO, nan company’s banal has climbed 16%, underperforming a 38% jump for nan Nikkei 225.

Olympus has had its adjacent stock of firm scandals.

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

Woodford was fired soon aft his assignment and mislaid a conflict to return power of Olympus.

In 2015, Toyota Motor executive Julie Hamp, an American, was arrested successful Japan connected suspicion of illegally importing nan painkiller Oxycodone into nan country. She was later released.