Nidec to sue founder Shigenobu Nagamori and eight former executives

Nidec: Nidec is a Japanese manufacturer of electric motors and related components, serving industrial and automotive markets globally. In this case, the company is pursuing legal action against its founder and other former leaders over accounting irregularities that have triggered regulatory scrutiny from the Tokyo Stock Exchange. Jun Seki: Jun Seki is a former chief executive of Nidec who currently serves as chief strategy officer for electric vehicles at Taiwan's Foxconn. Nidec has named him as one of the defendants in its planned lawsuit concerning historical accounting concerns at the motor maker. PwC Japan: PwC Japan is an auditing firm that provides financial assurance services to Japanese companies. It recently declined to issue an opinion on Nidec's accounts for the year ended March 2026 due to insufficient evidence, highlighting ongoing internal control issues at the company. Hiroshi Kobe: Hiroshi Kobe is a former chairman of Nidec with prior leadership responsibilities at the company. Nidec plans to include him in the lawsuit targeting former executives linked to the accounting irregularities under investigation. Mitsuya Kishida: Mitsuya Kishida is a former chief executive of Nidec. The company intends to sue him along with other ex-executives over the same suspected accounting practices that prompted the legal action. Shigenobu Nagamori: Shigenobu Nagamori is the founder of Nidec and served as a key executive overseeing the company's operations and governance. The news reports that Nidec alleges he breached supervisory duties by not reporting suspected accounting issues at group companies, leading to the decision to sue him for damages. Regulatory Scrutiny: The Tokyo Stock Exchange placed Nidec on special alert last October and granted the company one year to strengthen internal controls to avoid potential delisting. External Audit Outcome: PwC Japan declined to provide an audit opinion on Nidec's financial statements last month, citing a lack of sufficient evidence. Internal Review Findings: A committee of outside lawyers appointed by Nidec released a report this month that identified failures in supervisory reporting related to suspected accounting irregularities at group companies.