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Tokyo Stock Exchange

Toshiba's CEO resigns in $1.2-billion accounting scandal

Toshiba's CEO resigns in $1.2-billion accounting scandal

Toshiba's chief executive resigned Tuesday, taking responsibility for doctored books that inflated profits at the Japanese technology manufacturer by $1.2 billion over several years.

Toshiba acknowledged a systematic coverup, which began in 2008. Various parts of the Japanese company's sprawling business including computer chips and personal computers were struggling financially, but top managers set unrealistic earnings targets under the banner of "challenge," and subordinates faked results.

On top of its struggles in electronics, Tokyo-based Toshiba's prospects in nuclear power, one of its core businesses, were shaken after the 2011 Fukushima disaster set off...