Nidec Faces Shareholder Lawsuit Over Excessive Dividends and Stock Repurchases

TOKYO, Jul 21 (Pulse News Wire) – NIDEC CORPORATION (6594.T) received a request for legal action from a shareholder on July 16, seeking accountability against multiple former directors for issuing excessive interim dividends and repurchasing shares beyond distributable profits, as disclosed in previous communications dated June 2, 2023, and June 16, 2023. The shareholder's lawsuit, filed based on Article 847, Paragraph 1 of the Companies Act, demands that NIDEC initiate legal proceedings against several former executives.

The company had previously acknowledged these actions through press releases detailing the distribution of excess interim dividends and the receipt of an external investigation report. In response, NIDEC established an officer responsibility review committee on March 13, 2026, to assess whether current and former directors, auditors, or executive officers failed in their duties during the series of accounting irregularities within the group.

Based on the findings and recommendations of this committee, NIDEC plans to decide whether to pursue legal measures such as damages claims and will promptly disclose any decisions made. --- This development underscores ongoing scrutiny and potential legal repercussions stemming from past financial missteps at NIDEC Corporation.