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Toshiba CEO Resigns in $1.2 Billion Scandal

Toshiba Corp. CEO Hisao Tanaka bites his lips during a press conference to announce his resignation at the company's headquarters in Tokyo, July 21, 2015.

The chief executive of Toshiba resigned Tuesday in response to revelations the company inflated its profits by $1.2 billion over the course of several years.

An independent report blamed the scandal on pressure from company leaders to meet difficult targets and a corporate culture that did not allow for employees to challenge their bosses.

CEO Hisao Tanaka bowed before cameras in Tokyo and took blame for the scheme, which dates back to 2008.

"The responsibility lies in the management, including myself," he said. "As a response, I am stepping down from the post as the CEO and president."

Toshiba Chairman Masashi Muromachi will serve as an interim replacement for Tanaka.

Two other high-level Toshiba figures, Norio Sasaki and Atsutoshi Nishida, are also stepping down for their involvement.

The company's stock rose six percent Tuesday, rebounding from recent losses.