Nomura Investors File Suits Against Former Directors

Shareholders at Nomura, Japan's largest securities company, have taken legal action against its former president and some key officials after the recent scandal over payments to corporate extortionists. The move is a further embarrassment to Nomura, which will soon learn what form of government action it faces over the scandal.

It bolsters a recent trend in Japan for shareholders to bring suits against company officials.

Last month shareholders of Sumitomo Corporation sued its directors for negligence over last year's copper losses.

In another case that could serve as a powerful precedent for the Nomura suit, directors of the Japanese retailer, Takashimaya, were forced to repay Y170 million (