A New Securities Probe Targets Nidec — What Investors Need to Know

Why Rosen Law Firm is Asking Investors to Reach Out

On Dec. 13, 2025, the Rosen Law Firm announced it is investigating Nidec (NJDCY) and encouraged investors who bought the company’s U.S.-traded securities to come forward. The firm said it is looking into whether Nidec made false or misleading statements or failed to disclose material information that could have affected the price of the company’s securities.

The announcement itself is short and follows a now-common playbook for securities plaintiffs’ firms: it states the firm has opened an inquiry and invites potentially harmed investors to contact them. The press notice does not lay out a full complaint or list a detailed class period. Instead, it signals the firm believes there may be grounds for a securities class action and is gathering investors who might have suffered losses.

Which Investors and Securities Are Likely Involved

The notice explicitly names Nidec’s OTC-traded shares (NJDCY) as the U.S. security of interest. That typically means the investigation targets U.S.-market investors who bought the company’s OTC shares or U.S. ADRs, if ADRs were offered during the alleged period. Institutional holders, retail investors and retirement accounts that bought those U.S.-traded instruments are usually potential class members.

Because Nidec is a Japan-headquartered company with a primary listing overseas, U.S. litigation often focuses on whatever vehicle U.S. investors used to gain exposure — OTC shares, ADRs, or derivatives. The final class, and who can join, will be set by the court once a complaint is filed and a class period is proposed.

How a Securities Class Action Typically Moves Forward

First, the investigator files a complaint in federal court alleging securities fraud. Shortly after that filing, competing plaintiffs usually move to be named lead plaintiff — the court then selects the lead plaintiff and counsel. That selection process often takes a few weeks to a few months after the initial complaint appears.

Once a lead plaintiff and counsel are appointed, the case moves into briefing and discovery. Expect motions to dismiss from the defendant; those can take several months to resolve. If the case survives dismissal, discovery — depositions, document production, expert reports — can take a year or more. Trials, if reached, add more time.

Possible outcomes range from dismissal to settlement to a court judgment. Settlements are common in securities class actions; they typically involve monetary payments and often do not include an admission of wrongdoing. Remedies can include damages paid to shareholders who can show they bought during the alleged class period and suffered loss, or in rare cases rescission of transactions. Timelines from filing to resolution often span two to four years, though some cases move faster or slower depending on complexity and appeals.

Market and Regulatory Risks for Nidec and Its Shareholders

The immediate market effect of the Rosen announcement is usually limited — law-firm notices themselves do not change company fundamentals. But the opening of a formal class-action probe can matter because it signals a legal exposure that may widen as facts come to light.

For Nidec’s U.S.-traded OTC shares (NJDCY), the main market risks are heightened volatility and reduced liquidity if investors pull back. If the investigation leads to a filed complaint and the company later discloses adverse facts or is hit with a large settlement, the OTC price could move sharply. That same news can pressure related instruments and sometimes affect sentiment around the company’s primary listing overseas.

Regulatory follow-up is possible. The U.S. Securities and Exchange Commission could open its own inquiry if investor losses appear tied to disclosure failures, and Japanese regulators could investigate local reporting practices. Those parallel reviews add layers of risk, potentially increasing costs and drawing management attention away from operations — a negative for investors who care about execution and growth.

Practical Next Steps for Nidec Shareholders Considering the Investigation

If you hold U.S.-traded Nidec securities and are concerned, common actions include documenting your trades and preserving account statements. Note the dates and prices of purchases and sales so you can track any later proposed class period and potential losses.

Watch for a formal complaint and a court notice that lays out the class period. That notice will include deadlines for filing to be a lead plaintiff or for opting out. If you think you may be part of the class, you can register your interest with counsel handling the case; the Rosen announcement gives that invitation. These are procedural steps — they do not obligate you to sue, but they preserve options.

Nidec in Brief and Why This Matters

Nidec is a global maker of motors and drive systems with operations centered in Japan and sales around the world. For U.S. investors, exposure typically comes through OTC shares (NJDCY) or ADRs rather than a direct Tokyo listing. The company has grown through a mix of product development and acquisitions, which makes clear, timely disclosure important to understanding future earnings and strategy.

While this Rosen announcement is a standard early-stage move by plaintiffs’ counsel, the risks to investors are real if the probe develops into a complaint and leads to regulatory scrutiny or a settlement. At that point, the costs and reputational damage could hit the company’s stock and credit profile — and U.S. holders of NJDCY could feel the effect first.

For investors, the coming months will be about watching for a filed complaint, any company responses, and whether regulators step in. Those developments will shape both the legal exposure and market reaction.

Sources

• prnewswire.com