The Tokyo District Court ruled that ex-company president Tsuyoshi Kikukawa and five others, who were sacked when the fraud was discovered, are liable for the fines, although the company and its shareholders originally launched the civil case against a total of 19 executives. One of the six has died, but Olympus has suggested his three heirs may be asked to pay.

Former CEO Michael Woodford turned whistleblower shortly after being appointed as the company’s first non-Japanese top executive in 2011.

He questioned a number of large payments made by the company in relation to fees for several takeover deals, which he alleged were used to disguise losses.

A subsequent investigation uncovered a £1.1bn accounting fraud  which eventually saw three former Olympus executives found guilty and given suspended sentences by the Japanese courts for their part in falsifying accounts to cover up losses.

In a statement to shareholders and investors on the judgment for damages against the former directors, Olympus said: ‘We will decide our future course of action after closely investigating  the details of the judgment and consulting with our legal counsel.

‘The impact on the Company’s business results has not yet been determined. The Company will give immediate notice upon the occurrence of any matter requiring dislosure’.

This is the latest phase in the long-running fraud case, which has already seen a settlement with 13 former Olympus executives, who faced financial penalties arbitrated by the Court.  

Pat Sweet and Sara White