A Major Apple Supplier Employee Embezzled $5.3M

Major Apple Inc. AAPL supplier Japan Display Inc. JPDYY on Thursday said that the company laid off an accountant last year for embezzlement, Reuters reported.

What Happened Japan Display

The LCD maker has filed a criminal complaint against the executive for embezzling $5.3 million over four years. The employee arranged payments from Japan Display to a fictitious company created by him, JDI said in a statement reviewed by Reuters.

Japan Display was formed in 2011 as a joint venture between the LCD divisions Sony Corporation SNE, Toshiba Corporation TOSBF and Hitachi Ltd. HTHIY.

Why It Matters For Japan Display

The company is one of the largest suppliers of displays for Apple’s iPhones. It was previously the exclusive supplier for Nintendo Switch, as reported by the Wall Street Journal.

Japan Display has been struggling to turn profits ever since its initial public offering. The company reported a loss at $995 million in the first half of 2019, as reported by the Nikkei last week — its sixth consecutive half-year loss.

Japan Display’s stock closed 1.37% lower at the Tokyo Exchange on Thursday.