Olympus is suing its current president and 18 other executives, past and present, for 37 million euros in compensation over a massive accounting scandal.
The Japanese maker of cameras and medical equipment says all board members named in the mismanagement lawsuit will have to resign in March or April.
Olympus shares surged with investors betting it will now become a takeover target.
Olympus has lost almost half its market value since the scandal erupted in October, when it fired its British boss Michael Woodford, a rare foreign CEO in Japan, for questioning dodgy acquisition deals at the heart of the scandal.
Olympus’ decision to sue follows a report by a separate panel appointed by the firm to look into who was to blame for the scandal. The panel said the 19 current and former executives bore various degrees of responsibility.
“Considering that the truth would have remained in the dark if Woodford had not raised doubts, we must have deep misgivings about the closed nature of Olympus’ management to date and the weakness of its corporate governance, which allowed this situation,” said this panel’s report, released on Tuesday.