Nidec scandal exposes limits of Japan reform, Muddy Waters says

Prominent short seller Carson Block says he expects further fallout from Nidec’s accounting irregularities. | Bloomberg

Nov 5, 2026

Ten years after his bearish bet on Nidec, prominent short seller Carson Block says the current scandal engulfing the motor maker shows Japan’s corporate reforms haven’t gone far enough.

“There are a number of problematic companies, and it’s a market where people just haven’t really been held accountable,” Block said in an online interview. “There’s real dysfunction, and transparency is needed from activist short sellers and the media.”

Nidec has been mired in an accounting scandal since last year and faces potential delisting from the Tokyo Stock Exchange after failing to secure an auditor’s opinion on its financial statements.

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