On June 30, 2021, The Asahi Shimbun, a Japanese newspaper, published an article entitled “Mitsubishi Electric faked train test data likely for decades” which reported that “Mitsubishi Electric Corp. is feeling the heat after admitting that it has faked testing data when supplying train companies with air conditioning equipment apparently for more than 30 years.” The article further reported that “[a]lthough no such tests were conducted, fake data was created and included in test reports to give the appearance there were no problems with the equipment.” On this news, Mitsubishi Electric’s American depositary shares fell $1.54 per ADS, or 5%, to close at $27.30 per ADS on July 1, 2021.

On July 2, 2021, Nikkei Asia published an article entitled “Mitsubishi Electric CEO Sugiyama quits over fake inspections: Outgoing chief admits ‘systemic wrongdoing’ going back decades at industrial group[.]” On this news, Mitsubishi Electric’s American depositary shares fell over 5% over the next three days to close at $26.15 per ADS on July 8, 2021.