Nidec Corporation Faces Executive Shake‑Ups Amid Accounting Scrutiny

Nidec Corporation (OTC: NJDCY), the Japanese maker of precision motors that powers everything from household appliances to automotive components, has entered a period of intense corporate turmoil. Over the past few days, the company has announced a succession of leadership changes and attracted the attention of a prominent securities litigation firm, all set against a backdrop of accounting concerns that have tarnished its reputation.

Executive Resignations and Succession

On December 19, 2025, founder and long‑time chairman Shigenobu Nagamori stepped down from his positions as representative director and chairman of the board. Nagamori, who has been the face of Nidec since its inception, cited a desire to strengthen internal governance and improve management practices as reasons for his departure. The resignation came as the company’s accounting practices were under scrutiny, prompting a push for fresh leadership.

In the wake of Nagamori’s exit, Nidec’s chief executive officer and president, Mitsuya Kishida, was appointed as the new chairman of the board. Kishida has been with Nidec for decades, leading its global expansion and product diversification. His elevation is intended to signal continuity while also reassuring investors that the company will take decisive action to address the recent governance concerns.

A subsequent announcement on December 22, 2025 confirmed that Kishida had also taken on the role of representative director, consolidating his executive responsibilities. The company also announced the resignation and title change of another member of its board, though details about the individual remain sparse.

Compounding the corporate upheaval, Faruqi & Faruqi, LLP, a national securities law firm, has initiated an investigation into potential claims on behalf of Nidec investors. The firm, known for its litigation work in securities disputes, issued a press release on December 21, 2025 outlining its intent to probe whether investors suffered losses due to alleged misrepresentations or accounting irregularities. The firm’s spokesperson urged investors who experienced significant losses in Nidec’s shares or options to contact partner James (Josh) Wilson directly for discussion of their legal options.

The investigation was reiterated in a follow‑up communication on December 20, 2025, emphasizing that the firm was actively pursuing claims against the company. While the nature of the alleged misstatements has not been publicly disclosed, the timing suggests a connection to the accounting issues that prompted Nagamori’s resignation.

Accounting Concerns and Market Impact

The catalyst for these events appears to be a series of accounting irregularities that have come to light over the past weeks. Reports from Nippon.com and The Japan Times on December 20, 2025 detailed that Nidec’s financial statements were found to contain inconsistencies that could affect the company’s reported earnings and asset values. The revelations have eroded investor confidence and prompted a swift leadership re‑organization.

Given Nidec’s market cap of approximately 2.29 trillion JPY and a price‑to‑earnings ratio of 18.94, the market has reacted sharply. The company’s stock, traded under the ticker 6594.T on the Tokyo Stock Exchange and NJDCY on the OTC market, has experienced significant volatility. With a recent close of 1998 JPY and a 52‑week range between 1797 JPY and 3296 JPY, the share price remains sensitive to news of governance and financial integrity.

Outlook

Nidec’s leadership transition, coupled with the legal scrutiny from Faruqi & Faruqi, positions the company at a critical junction. The appointment of Kishida as chairman and representative director signals an intent to stabilize the board, but investors will likely demand transparency and corrective action regarding the accounting issues. The outcome of the securities investigation will also play a decisive role in determining the company’s future trajectory.

Stakeholders should monitor forthcoming disclosures from Nidec, particularly any audited financial statements and internal audit reports, to assess whether the company has rectified the underlying problems. Until such information is available, the market may continue to treat Nidec’s shares as a high‑risk investment amid ongoing governance reforms.