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Nidec Corporation Under Investigation for Accounting Irregularities

In a recent announcement, Faruqi & Faruqi, LLP, a prominent national securities law firm, has signaled its scrutiny of Nidec Corporation due to mounting concerns over potential accounting improprieties. This inquiry has arisen following significant declines in the stock price of Nidec, which has, unfortunately, affected many investors. The firm encourages those who have suffered financial losses to reach out and discuss their potential legal recourse.

Background of the Inquiry

Nidec Corporation, a key player in the manufacturing and technology sectors, caught the spotlight on September 3, 2025, when it disclosed that it had initiated an independent committee investigation into allegations of improper accounting practices. This revelation came as a shock to investors, causing the company's stock to plummet 16.5% to close at $4.11 per share the following day.

The decline was only the beginning. On September 26, Nidec announced the findings of its ongoing investigation revealed additional instances of suspected inappropriate accounting, such as misreported values for customs. This revelation drove the stock's price down further by 6.6%.

Things took a turn for the worse when, on October 23, Nidec made the unexpected announcement that it would not be issuing its year-end forecast or paying its surplus dividend due to the ongoing nature of the investigations. The result was another staggering 25.4% drop in stock price, closing at $3.43.

Most alarmingly, on October 27, the Tokyo Stock Exchange issued a Special Security alert regarding Nidec with the indication that the company’s internal management systems needed urgent improvement. The report emphasized how the scope of the investigation was expanding and that deficiencies were identified in the internal controls related to accounting and communications. Following this disturbing declaration, Nidec's stock fell once more, settling at $3.15, marking a further drop of 20.3%.

Legal Options for Investors

Given the chain of events, investors who have suffered financial losses due to the revelations surrounding Nidec now find themselves with options for legal action. Josh (James) Wilson, a senior partner at Faruqi & Faruqi, LLP, is urging affected investors to contact the firm. With a history of securing hundreds of millions of dollars for investors, the firm is prepared to investigate possible claims against Nidec, particularly focusing on the irregularities disclosed in the investigations.

For those who wish to inquire further about their rights and options following potential losses in their investment, they can reach out directly to the firm at 877-247-4292 or 212-983-9330 (Ext. 1310). More information regarding the investigation can be found on Faruqi & Faruqi's website at www.faruqilaw.com/NJDCY.

Looking Ahead

The ongoing situation with Nidec serves as a stark reminder of the importance of transparency and accountability in corporate financial practices. As investigations proceed, the ramifications for the company and its shareholders remain uncertain. Investors are encouraged to stay informed and proactive about their financial rights during this tumultuous time.

In the world of investments, the stakes can be exceptionally high, and understanding one’s rights and options can make all the difference. Those facing significant losses need to consider seeking guidance as they navigate this challenging scenario with Nidec Corporation.