Nidec Shares Hit Decade Low Over Accounting Scandal
Nidec shares plummeted to a ten-year low after an outside committee found founder Shigenobu Nagamori and other executives civilly liable for improper accounting.
Shares of Nidec dropped to a decade low on Monday following a report from an outside committee that found founder Shigenobu Nagamori and other current or former executives bear civil liability for damages caused by years of improper accounting. The committee submitted these findings to the board last week, triggering a corporate crisis that has prompted the company's largest shareholder to request a review of privatization options.
Nidec is currently attempting to regain auditor approval and prove to the Tokyo Stock Exchange that its internal controls have been repaired. The company plans to release a partially redacted version of the committee's report on Tuesday.
Newly appointed CEO Michio Kaida is now managing the fallout while facing pressure from activist investors. Kaida is tasked with restructuring the company's loss-making business units as the manufacturer works to stabilize its governance and regulatory standing.
