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Mitsubishi UFJ Trust to sue Toshiba over 2015 accounting scandal

TOKYO Mitsubishi UFJ Trust and Banking Corp [MTFGTB.UL] is preparing to sue Toshiba Corp for 1 billion yen ($8.7 million) in damages after its share price tanked due to a $1.3 billion accounting scandal two years ago.

The trust bank is seeking compensation on behalf of its client pension funds, a spokesman said on Monday.

The development is an extra headache for the conglomerate which has plunged into crisis again.

It said on Friday it will sell a minority stake in its memory chip business as it urgently seeks funds to offset an imminent multi-billion dollar writedown, adding that its overseas nuclear division – the cause of its woes – was now under review.

The laptops-to-nuclear conglomerate said in October last year that it had been sued by 15 groups and individuals since it first admitted to reporting inflated profits going back to 2008.

(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)