According to sources, Toshiba's reasons for overstating the profits included deteriorated earnings due to the global financial crisis, the earthquake off the Pacific coast of Tohoku in 2011 and the Fukushima meltdown. The company also lost $3.6 billion in market value after it withdrew the earnings forecasts, and cancelled the year-end dividend in May, says Bloomberg. In a new update, the news agency said, Japan's Financial Services Agency has not alleged any wrongdoing by Toshiba or its management, so far. But the company is still under risk of getting slapped with penalty for faking the profits. Toshiba's action of issuing almost 1 trillion yen ($8 billion) of stocks and bonds after inflating its earnings statements, may expose it to possible regulatory fines or litigation from investors for having misled them with false financial statements.