And ST HD (TYO:2685) said a former employee of its restaurant subsidiary Zetton misappropriated about 170 million yen between 2020 and 2025, according to a Wednesday filing on the Tokyo Stock Exchange.

The misconduct, uncovered in July after a whistleblower report, involved cash withdrawals concealed with fraudulent accounting. The employee has been dismissed, admitted to the misappropriation, and faces legal action, including criminal proceedings.

The company said the incident does not materially affect past or current financial results. It introduced stricter internal controls at Zetton and cut executive pay, including a three-month 10% reduction for And ST HD's president, chairman, and senior managing director.