1. Details of the civil lawsuit
(1) Court:
(2) Date of filing the lawsuit:
(3) Defendants: Editor-in-chief, reporters, and writers for Toyo Keizai Online,
(4) Address of the defendants: 1-2-1 Nihonbashi, Hongokucho, Chuo-ku,
(5) Details of the demands: Damage compensation, removal of the article in question, and apology advertisements, among others
2. Background leading to the civil lawsuit
Toyo Keizai Online published an article on
Toyo Keizai Online completely misunderstood the section, “Q&A on Insider Trading” (the “Financial Services Agency’s Q&A”), published by the
The Financial Services Agency’s Q&A stipulates that an act by a company creating a trust to acquire treasury stock will not be insider trading, provided that the company is not aware of insider information at the time of the creation of the trust, and that, after creating such trust, the company does not provide a trust bank with instructions on the acquisition of the stock.
Whereas, the Financial Services Agency’s Q&A sets forth a rule that “when providing a trust bank with instructions on the acquisition of treasury stock after creating a trust,” a company must provide instructions, such as isolating information between the instruction-providing department and other departments that know material facts, based on material facts.
Toyo Keizai Online misunderstood this rule, which applies “when providing instructions after creating a trust,” and published an article describing the wrong rule that “a company must isolate information even when creating a trust,” falsely claiming that the involvement of the Company’s Chairman in the creation of a trust itself would constitute insider trading.
As the Financial Services Agency’s Q&A clearly explains, what matters when creating a trust is not whether information is isolated or not, but whether the individual setting the trust is aware of any material fact or not. Furthermore, Nidec’s acquisition of treasury stock cannot be an act of insider trading since, as has been stated above, the Company confirmed, prior to creating a trust, that there was no insider information.
Nevertheless, Toyo Keizai Online published an article based on its obvious misunderstanding that “a company must isolate information even when creating a trust” as if it were true, and reported that the Company allegedly conducted insider trading by determining that such act is a violation of the rules.
Not only does this article in question slander Nidec’s honor and reputation, it is confusing the stock market with false information, and such an act is totally unacceptable to us. Therefore, today, the Company filed a civil lawsuit against
Contact:
General Manager
Investor Relations
+81-75-935-6140
ir@nidec.com
Source:
2022 GlobeNewswire, Inc., source