Faruqi & Faruqi, LLP Probes Nidec Corporation for Investor Claims
Faruqi & Faruqi, LLP, a prominent national securities law firm, recently announced an investigation concerning claims on behalf of investors in Nidec Corporation (OTC: NJDCY). The firm has a landmark history dating back to its establishment in 1995, recovering significant amounts for investors and boasting offices across New York, Pennsylvania, California, and Georgia.
The crux of the matter began on September 3, 2025, when Nidec Corporation publicly acknowledged it had established a third-party committee tasked with probing allegations of improper accounting practices. This revelation was alarming for stakeholders, as it indicated potential misconduct involving the company’s management and its subsidiaries. Following the announcement, Nidec's stock price plummeted by $0.81 or 16.5%, closing at $4.11 per share the day after the announcement, signaling distress among investors.
Further unsettling developments were disclosed on September 26, 2025. Nidec unveiled additional findings from its internal reviews, highlighting yet more evidence of suspected improper accounting, which included irregularities in the reported values for customs purposes that appeared to be undervalued without acceptable justification. Such revelations proved detrimental, causing another decline in Nidec’s share price by $0.29 or 6.6%, with shares closing at $4.09.
The situation worsened when on October 23, 2025, Nidec announced it would retract its year-end forecast, stating that due to ongoing investigations related to improper accounting practices and other internal inquiries, the company would not be issuing its surplus dividend. This news precipitated a staggering fall in its stock price, dropping $1.17 or 25.4%, ultimately closing at $3.43 per share.
The pressure on Nidec escalated when the Tokyo Stock Exchange designated it under a Special Security alert on October 27, 2025. The alert pointed to the urgent need for improvement in the company's internal management systems and acknowledged existing shortcomings in internal controls related to accounting and financial processes. This prompted further decline in the stock, which fell by $0.80 or 20.3%, dwindling to a shocking $3.15 per share, compounding investor losses.
In light of these serious developments, Faruqi & Faruqi encourages impacted investors to consider their legal options. Those who sustained substantial losses in Nidec's stock are urged to reach out for a confidential consultation. The firm’s Senior Partner, James (Josh) Wilson, emphasizes the importance of holding accountable those responsible for the financial derelictions that have compromised shareholder value.
Faruqi & Faruqi has successfully litigated numerous cases of this nature, and they stand ready to assist clients who seek restitution for their losses. Investors interested in further details regarding the Nidec investigation are invited to visit
www.faruqilaw.com/NJDCY or contact the firm directly at 877-247-4292 or 212-983-9330.
As the investigation unfolds, it remains crucial for investors to stay informed and proactive about their rights and available legal recourse in the face of corporate misconduct.