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Toshiba posts huge losses, shares nosedive

The shock-drama that hit Toshiba when it was revealed that the company inflated profits has now reflected on the shares.

According to a report by the CNN, the Japanese company posted an operating loss of 90.5 billion yen (£488m), for the first half of the year. This drove Toshiba’s shares another 7.5 per cent down, to a total of 40 per cent this year.

Saturday's financial results were "a categorical disaster, with more skeletons coming out of this massive closet of theirs," wrote Bernstein analyst Mark Newman.

The company tried to soften the hit by suing three former CEOs and two former CFOs over alleged poor oversight that led to over a billion dollars in faked profits. Toshiba is seeking 300 million yen (£1.6 million) in damages.

Other Toshiba executives have stepped down.

This has been a disastrous year for the Japanese electronics maker. After the company started investigating its own practices in April, it was soon unveiled that its executives were rigging company figures. Toshiba cancelled its year-end dividend and postponed earnings, prompting analysts to downgrade investment recommendations and earnings forecasts.

The situation escalated in July, when CEO Hisao Tanaka resigned.

Toshiba is a Japanese multinational conglomerate corporation headquartered in Tokyo, Japan. It creates a whole range of products, including information technology, communications equipment, power systems, consumer electronics, household appliances, medical and office equipment, lighting and logistics.

It was founded in 1938 through the merger of Shibaura Seisaku-sho (founded in 1875) and Tokyo Denki (founded in 1890).

It's now one of the world's most recognizable consumer electronics brands.