Nidec to sue former executives over accounting issues

What happened

Nidec, a Japanese electric motor maker, decided to sue founder Shigenobu Nagamori and eight other former executives for damages over suspected accounting irregularities that have put its stock market listing at risk. Nidec is still determining how much compensation it will seek.

Confirmed

Global impact / market context

The lawsuit targets the company's own founder and former leaders, which is unusual and signals serious concern about how numbers were reported. For investors, the bigger risk is that the Tokyo Stock Exchange could delist the stock, meaning it would stop trading publicly, hurting shareholders' ability to sell.

Analyst inference

Nidec was placed on special alert in October 2025 and has one year to fix internal controls, which are the checks that keep accounting honest, or risk delisting. The lawsuit follows an outside lawyers' report finding Nagamori failed to report suspected irregularities to the board and auditors.

Analyst inference

What to watch

1. Nidec has not yet set the amount of compensation it will seek, so the financial size of the claim remains unknown until the company files the lawsuit. Confirmed
2. Nidec plans to sue former chairman Hiroshi Kobe, former chief executives Mitsuya Kishida and Jun Seki, two former directors, two former auditors and a former finance chief. Proposed
3. Watch whether Nidec meets the exchange's one-year deadline to improve internal controls, since failure could lead to delisting and reduce investors' ability to trade the stock. Analyst inference

Evidence

• Original source link unavailable