The Department of Justice is Looking into the Deepening Kobe Steel Scandal
Kobe Steel Ltd ( (KBSTY) ) said Tuesday that the U.S. Department of Justice has requested documents related to its ongoing data falsification scandal that reports indicate may have begun more than a decade ago.
The company said it would co-operate with U.S. authorities in the probe, which has impacted some 500 customers of Japan's third-largest steel company, including automakers Ford Motor Co. ( (F) - Get Report ) and General Motors ( (GM) - Get Report ) as well as planemaker Boeing Co. ( (BA) - Get Report ) as the scandal deepens.
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"Kobe Steel USA Inc., a U.S. subsidiary of Kobe Steel, Ltd. received a document from the U.S. judicial administrative authority requesting the production of documents related to non-conformity with the specification of products sold by the Company, the U.S. subsidiary or our affiliated companies to U.S. customers," Kobe Steel said in a statement. "The Company and its subsidiaries will sincerely cooperate with the investigation."
"The effect this incident will have on the Company's business performance is unclear at this time," the statement added. "The Company plans to make another announcement when the extent of the impact becomes clear."
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