Tokyo Stock Exchange to Drop Livedoor

14 March 2006

The Tokyo Stock Exchange is to delist shares in Livedoor, the scandal-hit internet firm whose founder, Takafumi Horie, is in custody on charges of misleading investors.

The trading of shares in Livedoor, which provides online services including concert ticket sales and equity trading, will cease on April 14.

The company has lost 91% of its market value since January 16 when prosecutors raided its offices. Horie and three former directors of the firm were subsequently arrested and charged with breaking securities laws [WAMN: 14-Feb-06].

The iconoclastic Horie, who denies any wrongdoing, and the other three are also now accused of overstating earnings.

Prosecutors claim the group doctored accounts to show a ¥5.3 billion ($44.7m; €37.4m; £25.8m) profit for 2003/4 rather than a loss of ¥313 million.

If found guilty the quartet face sentences of up to five years in jail and fines of ¥5m.

Data sourced from BBC Online; additional content by WARC staff