Nidec Weighs Damages Claims Against Founder, Former Top Executives Over Alleged Accounting Fraud

MT Newswires Live10-20

Nidec (TYO:6594) is weighing damages claims and other legal action against founder and ex-CEO Shigenobu Nagamori and others after an investigating committee found them liable for alleged accounting misconduct.

The other top executives include former President Hiroshi Kobe, former CFO Akihiro Sato, former Presidents Hiroyuki Yoshimoto and Jun Seki, and former CEO Kota Kida, according to a Tokyo bourse filing on Tuesday.

Nidec's board responsibility investigation committee concluded in an Oct. 16 report that the 2016 Asset Soundness Project and fiscal 2022 Structural Reform both set impairment budgets based on achievable operating profit rather than determining losses first.

Such actions, the filing read, reversed sound accounting logic and deferred vast negative legacy losses for years.

It also flagged impairment avoidance at subsidiary Nidec Precision's Z-1 and X/Y projects and an alleged fictitious technical-support contract booking 580 million yen in revenue.

Separately, it cited unrecorded allowances at Mexican unit NAMA and improper impairment testing at its Automotive Motor & Electronic Control Business Unit's (AMEC) division.

The committee tied the misconduct to about 22.2 billion yen in investigation costs, 5.3 billion yen in audit costs and 91.2 million yen in exchange fines, though Nidec Precision's issues alone lacked a sufficient causal link to those losses.

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Electronic Control Business Unit's (AMEC) division.</p><p>The committee tied the misconduct to about 22.2 billion yen in investigation costs, 5.3 billion yen in audit costs and 91.2 million yen in exchange fines, though Nidec Precision's issues alone lacked a sufficient causal link to those losses.</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"YCL","symbol_name":"ProShares Ultra Yen","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2676666859","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2676666859","pubTimestamp":1792486492,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. 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