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Olympus faces hundred of millions in compensations for accounting fraud.

Discussion in 'Micro 4/3 News and Rumors' started by orfeo, Apr 10, 2014.

  1. orfeo

    orfeo Mu-43 Top Veteran

    673
    Sep 27, 2013
    FR
  2. OzRay

    OzRay Mu-43 Legend

    Jan 29, 2010
    South Gippsland, Australia
    Ray, not Oz
    Never underestimate Japanese resolve and how Japanese businesses think, it's anything but like western ideas and ideals. They will not allow something like this to bring them down and even if the law suit is successful, it isn't that big a sum in the totality of their business.
     
    • Like Like x 1
  3. GFFPhoto

    GFFPhoto Mu-43 All-Pro

    Feb 24, 2013
    • Like Like x 1
  4. orfeo

    orfeo Mu-43 Top Veteran

    673
    Sep 27, 2013
    FR
  5. OzRay

    OzRay Mu-43 Legend

    Jan 29, 2010
    South Gippsland, Australia
    Ray, not Oz
    People predicted the end of Olympus when the financial scandal was revealed, yet they kept introducing new and better gear. Now people are predicting the end of Olympus even before a case has been heard. Are some that eager to see Olympus disappear?
     
  6. orfeo

    orfeo Mu-43 Top Veteran

    673
    Sep 27, 2013
    FR
    In fact it's predicting after the lawsuits has been announced. You can also expect a decrease in Olympus shareholder's happiness level.
     
  7. OzRay

    OzRay Mu-43 Legend

    Jan 29, 2010
    South Gippsland, Australia
    Ray, not Oz
    Olympus is currently sitting on 16+ lawsuits as a result of the scandal, but simply having a writ thrown at you doesn't mean that it will even get to court or if it does, that you will be found liable and for the amount sought. To do so is counting your chickens before the eggs have hatched. Olympus' shareholder happiness dived when the scandal was revealed, but that didn't stop Sony from investing in Olympus or shareholder happiness rising again.
     
  8. MajorMagee

    MajorMagee Mu-43 All-Pro

    Feb 24, 2011
    Dayton, OH
    At best they'll get a share of the business ownership, rather than cash.
     
  9. rklepper

    rklepper Mu-43 Top Veteran

    733
    Dec 19, 2012
    Iowa, USA
    Robert
    Olympus will just pass this on to the consumer and the shareholder. They won't even hardly flinch. If you think they will you have little understanding of how big business operates.
     
    • Like Like x 1
  10. WT21

    WT21 Mu-43 Hall of Famer

    Feb 19, 2010
    Boston
    The question about whether a company can survive something is always about cash flow, never about earnings. You would need to look at cash flow (and access to any additional funds, and potential settlements, not to mention years in litigation) to make a judgement.
     
  11. RickinAust

    RickinAust Mu-43 Regular

    119
    Feb 9, 2013
    Australia
    Have they set aside any reserves for this? If they have then they may expect some sort of payment.
     
  12. drd1135

    drd1135 Zen Snapshooter

    Mar 17, 2011
    Southwest Virginia
    Steve
    I for one would gladly pay twice as much for my Olympus lenses to help the cause.



    :)rofl:)
     
  13. dogs100

    dogs100 Mu-43 Top Veteran

    965
    Nov 12, 2011
    N Devon UK
    Geoff
    Does that include my second hand one? :wink:
     
  14. DoofClenas

    DoofClenas Who needs a Mirror!

    941
    Nov 9, 2012
    Traverse City, MI
    Clint
    The sky is falling...aaaaaaaaaaaaaaaahhhhhhhh.

    Does this mean that my camera is going to stop working?
     
  15. krugorg

    krugorg Mu-43 Hall of Famer

    Jul 18, 2011
    Minnesota USA
    Yes.

    I would be happy to take some of those lenses off your hands, Clint. Of course, they need to be cheap enough that I can have cash reserves for any potential lawsuits.
     
  16. DoofClenas

    DoofClenas Who needs a Mirror!

    941
    Nov 9, 2012
    Traverse City, MI
    Clint
    Tell you what, buy my em1 for $4200 and I'll toss in my lenses for free.
     
  17. GFFPhoto

    GFFPhoto Mu-43 All-Pro

    Feb 24, 2013
    I'm willing to forego lens hoods if that will help :smile:
     
  18. Hyubie

    Hyubie Unique like everyone else

    Oct 15, 2010
    Massachusetts
    Herbert
    Just thinking out loud - I think Japan would be very averse to folding up Olympus, as it is one of a handful of Japanese companies that can truly be called "global". Japan (and, pretty much East Asia) has a very deep sense of pride, and though they have a lot of rich and successful companies, very few have as much recognition globally. They may bash someone internally, but I suspect they'll be concerned too of their global image. Unlike in Western economies where very few are literally too big to fail, I think there is more at play here than market forces, finance, or accounting. Capitalism with an Asian twist, if you will.

    So my thinking is Olympus will continue to exist.
     
  19. tomO2013

    tomO2013 Mu-43 Top Veteran

    799
    Oct 28, 2013
    It's a flash in the pan financially speaking.

    Relatively recent financial reports show the following :
    http://www.43rumors.com/olympus-forecast-says-they-will-return-to-profit/

    In terms of investment, investors are quite willing to forgive the sins of the past if they can see a change in management (there has been) and potential for growth - sales figures are going up, not down.
    Even if (and its a massive if!) Olympus were to declare bankruptcy as a result of this lawsuit etc... the core fundamental business is still sound. A manufacturer such as Sony or Canon would probably jump in, buy it up, debts and all, just to get their hands on their extensive patent portfolio, technology and brand. In terms of end users, it would continue to be business as usual.

    You only need to worry about the longevity of the Olympus brand itself when people stop buying the cameras and the company stops innovating.