An Olympus Corp panel plans to recommend the endoscope maker sue current and former executives for more than 90 billion yen ($1.2 billion) in scandal-related damages, and its president, Shuichi Takayama, is expected to resign by the end of the month, media reported on Sunday.
Six of the company's eleven directors failed in their fiduciary duty by not spotting a 13-year accounting fraud that hid losses of $1.7 billion and thinned out the 92-year-old firm's net assets.
Takayama, who took the helm of the medical equipment maker in October, is expected to announce his resignation as early as Monday, Kyodo News Agency said.
Takayama had resisted calls that he resign, saying he was not involved with the loss cover-up and that his first responsibility was to rebuild Olympus's business after the scandal wiped out 60 percent of its market capitalization.
Takayama replaced former president and chairman Tsuyoshi Kikukawa in October, after ousted British CEO Michael Woodford blew the whistle on Kikukawa's involvement in the accounting fraud.
The panel plans to recommend the company sue more than 10 current and former executives, including Kikukawa, former vice president Hisashi Mori and former auditor Hideo Yamada, Kyodo and other media said.
(Reporting by Mayumi Negishi; Editing by Robert Birsel)