Nidec to Sue 9 Former Execs, including Founder Nagamori

Kyoto, Oct. 27 (Jiji Press)--Nidec Corp. said Tuesday that it has decided to file a damages lawsuit against nine former executives, including its founder, Shigenobu Nagamori, over an accounting scandal that came to light last year.

The decision comes after an investigation committee released a report on Oct. 20 finding the nine former executives liable for the scandal and estimating its cost, including investigation expenses, at about 27.6 billion yen.

The nine also include former company presidents Hiroyuki Yoshimoto, Jun Seki, Hiroshi Kobe and Mitsuya Kishida, as well as former vice president Akira Sato.

In its report, the committee said that the nine’s negligence resulted in significant write-downs and forced the company to spend heavily on handling accounting irregularities.

Over the scandal, Nidec shareholders have sued Nagamori and another executive for 28.7 billion yen in damages. They have also urged the company to file a lawsuit.

[Copyright The Jiji Press, Ltd.]