Olympus says CEO steps down after allegations of illegal drug purchase

TOKYO (Reuters) -Japanese medical equipment maker Olympus Corp said on Monday that Chief Executive Stefan Kaufmann has stepped down after allegations he purchased illegal drugs, sending its shares sharply lower.

“Upon receiving an allegation that Mr. Stefan Kaufmann had purchased illegal drugs … Olympus, in consultation with outside legal counsel, immediately investigated the facts,” the company said in a statement.

“Based on the results of the investigation, the Board of Directors unanimously determined that Mr. Stefan Kaufmann likely engaged in behaviours that were inconsistent with our global code of conduct, our core values, and our corporate culture.”

Following the board decision, Kaufmann was asked to offer his resignation and he complied, the statement said.

Reuters was unable to reach Kaufmann for comment.

Yasuo Takeuchi, a director who has formerly helmed the company, will carry out the duties of the CEO for the time being, Olympus said.

Olympus shares tumbled 5.7% in morning trade, underperforming the Nikkei average which was up 1.6%.