Alleged Fraud Undoes 5,800% Surge at Unit of ‘Most Ethical’ Firm

From Bloomberg

Two months after Japanese camera and printer maker Ricoh Co. was again recognized as one of the world’s most ethical companies, the shares of its Indian unit were suspended following a rout exacerbated by allegations of fraud.

Ricoh India Ltd. climbed almost 5,800 percent in about two decades to a record in August last year, before erasing most of those gains until the suspension of trading from May 26. The Indian unit said it’s a victim of a fraud allegedly perpetrated by people acting individually and conspiratorially. Ricoh India’s auditors said profits may have been inflated.

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