KDDI Corp shares tumbled nearly 10% to a three-month low after Japan's second-largest telecom provider revealed a 246 billion yen ($1.6 billion) financial hit from fictitious sales at two subsidiaries. The Tokyo-listed stock closed 8.8% lower at 2,554.5 yen following Friday's disclosure of accounting irregularities.

An internal probe found inflated revenue figures in the advertising businesses of Biglobe Inc. and G-Plan Inc., with improper transactions spanning multiple years. A special committee confirmed fabricated sales records, forcing KDDI to revise its financial statements. The company postponed its third-quarter earnings release until March while the investigation continues.

The scandal marks one of Japan's largest corporate accounting issues since Toshiba's 2015 crisis. Investors reacted swiftly to the uncertainty, wiping approximately $6 billion from KDDI's market value. Analysts warn the final financial impact could grow as investigators review additional business units.

Quick Fact: KDDI shares fell to 2,512.0 yen, their lowest since early November.