Nidec Corporation (OTC: NJDCY)

This investigation is for anyone who acquired securities in Nidec Corporation (OTC: NJDCY) from June 23, 2021 to October 27, 2025.

The Law Offices of Howard G. Smith believes that the Company and certain of its executives violated federal law. Specifically, the Law Offices of Howard G. Smith believes that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the Law Offices of Howard G. Smith believes that the Company misled investors by telling investors that the Company had in place internal controls to assure that the Company adhered to generally accepted accounting standards but then by failing to have such controls in place.

On September 3, 2025, Nidec disclosed it had established a third-party committee to investigate suspicions of improper accounting. The Company further revealed its “investigations found multiple documents suggesting that . . . the Company and its group companies could have engaged in improper accounting with the involvement or knowledge of its or their management[.]” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on September 26, 2025, Nidec disclosed further investigative findings of additional suspected inappropriate accounting practices, including “cases where the reported value for customs purposes was declared to be lower than the appropriate amount without legitimate reason.” The Company also revealed that it “received an audit report containing a disclaimer of opinion” from its auditor due to the “ongoing investigations by the third-party committee, other internal investigations, and other action[s].” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on October 23, 2025, Nidec published a press release announcing that it was withdrawing its year end forecast, and had decided not to pay a surplus dividend as “investigations by the Third Party Committee regarding suspected inappropriate accounting practices involving the Company and its group, as well as other internal investigations, are ongoing.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on October 27, 2025, the Tokyo Stock Exchange (“TSE”) designated Nidec under a Special Security alert in part because “TSE deems that the improvement of the internal management system of said listed company is highly necessary.” The alert noted that “[s]ince the initial issue was discovered, the scope of the investigation has continued to expand” and that “deficiencies have already been identified in the Company’s company-wide internal control systems (particularly in areas related to information and communication), as well as in the internal controls related to its accounting and financial closing processes.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Nidec Corporation (OTC: NJDCY) from June 23, 2021 to October 27, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.