Japanese camera maker Olympus (Xetra: 856840 - news) is suing 19 of its former and current executives over a £1.1bn accounting fraud that has engulfed the company in recent months.
The firm announced on Tuesday that it would sue the executives, including its current president, for up to £30m in compensation in an attempt to recover from one of Japan (EUREX: FMJP.EX - news) 's worst accounting scandals.
Olympus said all board members subject to the lawsuit would quit in March or April, leaving the company in the extraordinary position of continuing with six executives that it is suing for mismanagement at the helm.
The scandal erupted in October, when the firm fired its British boss, Michael Woodford, for questioning dodgy acquisition deals at the heart of the cover-up.
Mr Woodford, a rare foreign CEO in Japan, who went public with his concerns after his sacking, said last week he was abandoning a bid to be reinstated to his old job.
Lashing out at big Japanese shareholders for their failure to back him, he pledged to focus his efforts on his own claim for unfair dismissal.
Olympus' decision to sue follows a report by a separate panel appointed by the firm to look into who was to blame for the 13-year scheme to hide losses from investors.
The panel said the 19 current and former executives bore various degrees of responsibility.
The report widely condemned the firm's leadership.
It said: "Considering that the truth would have remained in the dark if Mr Woodford had not raised doubts, we must have deep misgivings about the closed nature of Olympus' management to date and the weakness of its corporate governance, which allowed this situation".
Olympus shares surged by as much as 28% on the news of the lawsuit, with investors betting the company's clean-up efforts would help it avoid a humiliating delisting from the Tokyo Stock Exchange.
Investors also looked forward to the eventual renewal of the board and to Olympus finally drawing a line under the fraud.
The company has lost almost half its market value since the autumn.
Olympus remains under joint investigation by Japanese police, prosecutors and regulators.
The probe could eventually result in criminal charges, although experts have said the firm itself is unlikely to be targeted.
British and US authorities are also investigating the affair, which has tarnished the reputation of the once-proud 92-year-old firm and has also stirred calls for reform of Japan's corporate governance regime.
Read more stories on the Olympus scandal:
:: :: :: :: :: which cuts through areas of outstanding natural beauty, has provoked criticism from locals.
One of those areas is The Chilterns in Buckinghamshire, where residents have organised a campaign group to fight the proposals.
"When schools are closed, teachers are losing their jobs... it is just unviable," said resident Alison Kenny.
"I can't believe we're still here having this conversation and the Government is still going ahead. It's just a vanity project. It's nothing more."
Steve Roddick, chief officer of The Chilterns Conservation Board, said: "It looks like this is all about how do you get to London more quickly.
"It's absolutely not the way to provide prosperity in the Midlands and the North, to make all these great cities suburbs of London. And that's the way it begins to look."
The plans have also divided politicians with Welsh Secretary Cheryl Gillan, who represents affected Chesham and Amersham, previously threatening to quit over the issue.
Homes in rural Conservative seats are among the hardest hit by the plans.
Trains are expected to start running along the new line in 2026. It will then be extended in a Y-shape to serve Leeds and Manchester (Frankfurt: A0ETDJ - news) , with reduced travel times to Liverpool and Glasgow by 2032.
The Department for Transport (Euronext: IXSTP.NX - news) said: "HS2 is not just about getting between London, Birmingham, Leeds and Manchester more quickly, but bringing faster services and many more seats to towns and cities well beyond the HS2 network.
"It would work just like a motorway. No-one uses a motorway to get all the way from their front door to their final destination, but they use it because it offers high capacity and faster services - precisely what HS2 will offer rail passengers."
Union leaders and business leaders have supported the project, arguing that it will be a boost to the economy and help bring the country's rail network up-to-date and in line with international competitors.
The proposals still need to be approved by Parliament, but today's announcement by Justine Greening is a major step towards implementation.
Lucy James from the Campaign for High Speed Rail welcomed the move and said it would deliver "more seats, more trains, more jobs and more growth" for Britain.
Former transport secretary Lord Adonis told Sky News the Government must also give a firm commitment the line will be extended to Leeds, Manchester and beyond.
"The Government really must get a move on - it is nearly two years since I announced the high-speed plan, they spent two years consulting, a consultation which could have taken six months," he said.
Lord Adonis said he supports "proper compensation" for residents directly affected.
"The rule with high speed rail is everyone wants the stations but no one wants the lines, well the line has to go somewhere so ultimately the Government has to take the decision," he added.
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