Toshiba shares fall after report trust banks preparing to sue

Logo of Toshiba Corp is seen behind a traffic signal at its headquarters in Tokyo

TOKYO (Reuters) – Shares of Toshiba Corp tumbled as much as 5.8 percent in early trade on Monday after a newspaper report that some trust banks are preparing to sue the company for damages.

The Asahi Shimbun reported that several trust banks including Mitsubishi UFJ Trust and Banking Corp [MTFGTB.UL] are set to sue Toshiba after its share price tanked due to a massive accounting scandal that has upended the company.

On Friday, Toshiba said it would sell a minority stake in its memory chip business as it urgently seeks funds to offset an imminent multi-billion dollar writedown on its U.S. nuclear business. It said the overseas nuclear division was now under review.

The Nikkei business daily separately reported over the weekend that Chairman Shigenori Shiga was ready to step down to take responsibility.

(Reporting by Ayai Tomisawa; Editing by Chang-Ran Kim)