#Japan #Tokyo #Faruqi & Faruqi #Nidec Corporation #accounting issues

Nidec Investors at Risk: A Detailed Investigation

Recently, Faruqi & Faruqi, LLP, a leading securities law firm, announced an investigation into Nidec Corporation (OTC: NJDCY) on behalf of affected investors. The firm’s probe comes in light of serious allegations regarding improper accounting practices that have already led to significant losses for shareholders. This exploration seeks to uncover any potential claims investors may have due to their financial damages in Nidec’s stock.

On September 3, 2025, Nidec disclosed the formation of a third-party committee tasked with investigating suspicions of inappropriate accounting. The company stated that their findings indicated various documents that suggested the involvement of management in these questionable practices. This disclosure resulted in a drastic decrease in the company’s stock price, plummeting by 16.5%, closing at $4.11 the following day. This marked the beginning of a troubling trend for Nidec’s investors.

As the investigation unfolded, more shocking details emerged. On September 26, 2025, Nidec reported additional findings, including cases where the declared value for customs was reported lower than it should be, raising eyebrows about the ethical standards within the company. Following this revelation, Nidec's stock value dropped again by 6.6%, to a closing price of $4.09. These continual declines underscore the gravity of the situation as investor confidence is shaken.

The challenges continued as on October 23, 2025, Nidec announced that it would withdraw its year-end forecast and not pay a scheduled surplus dividend amidst these ongoing investigations. Following this announcement, the stock experienced another significant fall of 25.4%, ending at $3.43. The regularity with which these revelations emerged has left many investors uncertain about their financial future with the company.

On October 27, 2025, the Tokyo Stock Exchange (TSE) then placed Nidec under a Special Security alert, signaling that improvements in its internal management were urgently needed. This alert pointed out that the scope of the investigation had been widening and that personal deficiencies had been identified within the company's internal controls — particularly those regarding accounting and financial obligations. This development led to a further major decline in stock price, down by 20.3%, with a closing value of $3.15. The pattern of falling stock prices is concerning, as it illustrates a broader impact on investor portfolios.

In response to these ongoing challenges, James (Josh) Wilson, a partner at Faruqi & Faruqi, is encouraging investors who suffered losses to assess their legal options. With hundreds of millions recovered for investors since its inception in 1995, the firm boasts an impressive track record in securities law. Investors affected by the fallout are advised to reach out directly to Wilson for pertinent discussions regarding potential claims.

Conclusion

The investigation into Nidec Corporation signifies a pivotal moment for its shareholders, reflecting potential malpractice and calls for heightened scrutiny within corporate governance. As Faruqi & Faruqi conducts its investigation, affected investors are urged to stay informed and consider their rights.
For more information about the ongoing investigation and to learn about your options, interested parties can visit Faruqi Law or contact directly at 877-247-4292.