Toshiba Investors Can Renew Fight Over Accounting Irregularities

Toshiba Corp. investors are getting another chance to solidify their claims against the company for using misleading internal accounting practices that ultimately led to a financial restatement.

The Ninth Circuit Court of Appeals ruled July 17 that a lower federal court misapplied the law when dismissing the suit, and that investors should be allowed to amend their complaint.

The litigation comes in the wake of Toshiba’s admission of substantial institutional accounting fraud and accompanying restatements of pre-tax profits.

Investors bringing the suit didn’t sufficiently show they could prove Toshiba, which has a market capitalization ...