Tokyo Stock Exchange levies a 91.2 million yen penalty on KDDI, saying its subsidiary’s sham transactions "undermined investor trust"

Tokyo Stock Exchange hit KDDI with a 91.2 million yen contractual fine, the maximum allowed, over fabricated transactions at a subsidiary and grandchild company.

The misconduct forced restatements for four fiscal periods and sharp downward revisions to sales and operating profit.

KDDI was also ordered to submit an improvement report.

The case underscores how weak oversight of subsidiary fraud can trigger serious governance scrutiny and damage investor confidence.