Japan Display will review its past earnings after a former accounting executive notified the company of a past accounting fraud that he said was directed by former top management, reports Reuters.
The executive, who was fired last year for embezzling about $5.3 million over four years since 2014, made the notification on Tuesday, Japan Display said in a statement. This is another hurdle the cash-strapped company faces as it tries to raise at least 50 billion yen ($460 million) through a bailout deal with Apple and other investors.
Japan Display is an LCD technology joint venture by Sony, Toshiba, and Hitachi. For the past seven year, it’s had its share of financial woes as it dealt with the rise of low-cost regional rivals, underestimated an industry shift towards organic light-emitting diode (OLED) display, and an inability to break its smartphone reliance on Apple. Japan Display generates more than half of its revenue form Apple.
Last month is was reported that Japan Display is looking to finalize a deal this month for least 50 billion yen (about $470 million) in funding after an investment group suddenly pulled out of a bailout plan. Apple is rumored to possibly be investing $200 million in the company.