The first trial of five defendants, including former vice president Toshihiro Sato (60) and former general manager of the Equity Department Makoto Yamada (45), was held at the Tokyo District Court on May 5. SMBC Nikko Securities has charged six former executives and a corporation with market manipulation in violation of the Financial Instruments and Exchange Act.
The prosecution argued that Yamada and others were concerned that the stock price would fall significantly in a deal called a 'block offer' in which they bought large amount of shares from major shareholders and resold them to investors.