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June 10, 2019, 8:48 p.m. EDT

Canon and Toshiba fined $2.5 million each for U.S. antitrust violations

Japanese companies didn’t notify authorities before 2016 medical-device deal

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By Dylan Tokar


Reuters
The scheme to circumvent the HSR Act was devised shortly after an internal investigation by Toshiba surfaced long-running accounting irregularities in July 2015, according to the complaint.

Canon Inc. and Toshiba Corp. on Monday agreed to pay $2.5 million each to settle charges the companies violated U.S. antitrust laws by failing to notify authorities before a deal made for Toshiba’s medical device business.

Faced with accounting irregularities that surfaced in 2015, Toshiba designed a scheme to sell its medical system subsidiary to Canon for around $6.1 billion in 2016 while evading notification rules, according to a civil complaint filed by the Justice Department.

Under a consent decree, the two companies agreed to create a program for complying with the notification law, known as the Hart-Scott-Rodino Act, and other antitrust laws, the Justice Department said.

Canon /zigman2/quotes/210242912/composite CAJ -1.42%   /zigman2/quotes/207639533/delayed JP:7751 -1.57%   and Toshiba /zigman2/quotes/205628942/delayed JP:6502 -0.41%   didn’t immediately respond to requests for comment.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/210242912/composite
US : U.S.: NYSE
$ 26.45
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JP : Japan: Tokyo
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JP : Japan: Tokyo
¥ 3,675.00
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Volume: 1.90M
Oct. 18, 2019 3:00p
P/E Ratio
N/A
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0.54%
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¥1731.68 billion
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¥26.86M
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