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, Nidec's stock price fell $0.81, or 16.5%, to close at $4.11 per share on September 4, 2025, thereby injuring investors.Then, on ...

Core Points - Nidec Corporation is under investigation for potential improper accounting practices, which has led to significant stock price declines and investor losses [5][6][7][8][9] - The Tokyo Stock Exchange has designated Nidec under a Special Security alert due to deficiencies in its internal management and accounting controls [8][9] Group 1: Investigation and Findings - On September 3, 2025, Nidec announced the establishment of a third-party committee to investigate suspicions of improper accounting, resulting in a 16.5% drop in stock price to $4.11 per share [5] - Further findings on September 26, 2025, revealed additional inappropriate accounting practices, causing a 6.6% decline in stock price to $4.09 per share [6] - On October 23, 2025, Nidec withdrew its year-end forecast and decided not to pay a surplus dividend, leading to a 25.4% drop in stock price to $3.43 [7] Group 2: Stock Exchange Response - The Tokyo Stock Exchange designated Nidec under a Special Security alert on October 27, 2025, citing the need for improvement in internal management systems [8] - Following this alert, Nidec's stock price fell by 20.3% to close at $3.15 per share, further impacting investors [9]

Core Viewpoint - Nidec Corporation is under investigation for potential improper accounting practices, leading to significant stock price declines and investor losses [5][6][7][8]. Group 1: Investigation and Findings - On September 3, 2025, Nidec announced the establishment of a third-party committee to investigate suspicions of improper accounting, revealing documents suggesting management involvement in these practices [5]. - On September 26, 2025, Nidec disclosed further findings of inappropriate accounting, including discrepancies in customs value reporting, and received an audit report with a disclaimer of opinion from its auditor [6]. - On October 23, 2025, Nidec withdrew its year-end forecast and decided not to pay a surplus dividend due to ongoing investigations into accounting practices [7]. Group 2: Stock Price Impact - Following the initial announcement on September 4, 2025, Nidec's stock price fell by $0.81, or 16.5%, closing at $4.11 per share [5]. - After the September 26 disclosure, the stock price dropped by $0.29, or 6.6%, to close at $4.09 per share [6]. - On October 23, the stock price fell by $1.17, or 25.4%, closing at $3.43 due to the withdrawal of the year-end forecast [7]. - On October 27, the stock price further declined by $0.80, or 20.3%, closing at $3.15 after being designated under a Special Security alert by the Tokyo Stock Exchange [8][9]. Group 3: Regulatory Response - The Tokyo Stock Exchange designated Nidec under a Special Security alert, indicating the necessity for improvement in the company's internal management systems and identifying deficiencies in internal controls related to accounting and financial processes [8].