4 Former Nomura Execs Sued in Class Action

In an unusual action for Japanese investors, a class-action lawsuit was filed against four former executives of Japan’s largest securities company over alleged payoffs to racketeers. The lawsuit against the ex-officers of Nomura Securities Co., filed on behalf of the company’s 120,000 shareholders, seeks the return of $555,000, the amount that Nomura was said to pay the gangsters. It marked the latest twist in a scandal that has dogged Nomura over shady relationships with racketeers, who threaten to disrupt shareholders’ meetings unless they are paid to stay away. “This class action is aimed at straightening the company out,” said Nobunori Nakada, a lawyer for the plaintiff who filed the lawsuit on behalf of all the shareholders. The four defendants named in the suit, filed in Tokyo District Court, are Hideo Sakamaki, former Nomura president, and three former managing directors--Shimpei Matsuki, Jiro Takeshi and Nobutaka Fujikura. The suit accuses Matsuki and Fujikura of conducting illegal deals that funneled the money to relatives of alleged sokaiya racketeer Ryuichi Koike. Sakamaki and Takeshi are accused of overlooking the deals. Nomura declined through a spokesman to comment on the lawsuit.