Nidec Delays Results as Shareholder Demands Director Suits Over Fraud

Japanese motor maker Nidec announced on August 5 that it will postpone the release of its consolidated results for the April-June 2026 quarter. The company is investigating the impact of accounting irregularities and quality problems, and has not yet completed corrections to its financial results for fiscal years ending March 2022 and later. Its fiscal 2026 results have also not been published, prompting the delay. The company said it will announce a new release date as soon as it is determined.

Nidec has applied to the Kanto Local Finance Bureau for an extension of the submission deadline for its fiscal 2026 securities report, and the application was approved, with a new deadline of September 30. Regarding the accounting irregularities, a third-party committee investigating the matter reported that the cumulative negative impact on net profit reached 160.7 billion yen through the April-June 2025 quarter. On the quality front, the company disclosed more than 1,000 suspected cases of unauthorized design changes made without customer consent.

The same day, Nidec said it received a written request from an individual shareholder demanding that current and former directors be held liable for damages under the Companies Act, citing accounting irregularities. The company discovered suspected improper accounting at a subsidiary around summer 2025, and a subsequent group-wide investigation by the third-party committee confirmed multiple accounting violations. In May 2026, suspected quality violations, including changes to parts or processes without customer approval, were also made public.

Nidec has established a director liability investigation committee to examine the legal responsibilities of directors and others. Based on the committee's report, the company will decide whether to seek damages from current and former directors, including founder Shigenobu Nagamori. In addition, the Securities and Exchange Surveillance Commission is planning to inspect Nidec and is considering recommending a penalty payment.