Nidec to seek damages from founder and executives over accounting fraud

Kyoto – Nidec has said it is considering legal measures, such as seeking damages, against former and current executives — including its founder, Shigenobu Nagamori — in connection with accounting irregularities that came to light last year.

The motor manufacturer said Friday it had concluded that the executives violated laws and regulations in the course of their duties.

The decision was based on an investigation report submitted Friday by a committee that had investigated the legal responsibility of current and former executives. Details of the report will be disclosed as early as Tuesday.

Those subject to the potential legal action include Hiroyuki Yoshimoto, Jun Seki, Hiroshi Kobe and Mitsuya Kishida, who became Nidec presidents after Nagamori stepped down from the post in 2018, as well as incumbent executive Kazuya Murakami and others.

The committee, comprising outside lawyers and certified public accountants, was set up last March.

A shareholder derivative lawsuit has been filed against Nagamori and another person, seeking ¥28.7 billion in damages. Many shareholders have also demanded that the company sue current and former executives for damages.