TOKYO (Reuters) – Japanese medical device maker Olympus Corp said on Monday that CEO Stefan Kaufmann has resigned following allegations that he bought illegal drugs, sending its shares sharply lower.
“Upon receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs… Olympus, in consultation with external legal counsel, immediately investigated the facts,” the company said in a statement.
“Based on the results of the investigation, the Board of Directors has unanimously determined that Mr. Stefan Kaufmann is likely to have engaged in conduct inconsistent with our Global Code of Conduct, our core values and our corporate culture.”
Following the board’s decision, Kaufmann was asked to tender his resignation and he complied, the statement said.
Reuters could not reach Kaufmann for comment.
Yasuo Takeuchi, an executive who previously led the company, will handle CEO duties for the time being, Olympus said.
Olympus shares tumbled 5.7% in morning trading, underperforming the Nikkei average, which rose 1.6%.
(Reporting by Kiyoshi Takenaka; Editing by Christopher Cushing and Edwina Gibbs)
