Nissan Files Case Seeking $90m In Damages Against Its Former Boss Carlos Ghosn

A case demanding $90 million in damages from Carlos Ghosn, the former global auto honcho and now a branded fugitive of Japan, was filed by the Japanese car company Nissan. The civil lawsuit was filed by the company at Yokohama District Court.

Ghosn is also a former chairman of the auto company and was arrested in Japan in November of 2018 over charges of financial misconduct.

Nissan aims “to recover a significant part of the monetary damages inflicted on the company by its former chairman”, the company said.

Ghosn, who fled Japan earlier this year jumping bail to go to Lebanon, criticized the demands of the company saying that the “manoeuvres” of Nissan were continuing.

“Nissan’s manoeuvres continue: this complaint is made public on the eve of the Japanese group’s financial results. We note that after months of announcing damages of 35 billion yen, Nissan is now claiming 10 at the moment. Mr Ghosn’s lawyers will react on the merits of the case once the content of the claim has been brought to their attention,” Ghosn said in response to the lawsuit.

The Japanese company however said that the amount sought in damages from Ghosn will increase in the future because the company would most likely have to pay fines to regulators over misconduct that were allegedly perpetrated by Ghosn.

Nissan may also file another defamatory case against Ghosn over the comments made by the former chairman in a news conference he held in Beirut as the company described the comments as “groundless and defamatory”, the company also said.

“My unimaginable ordeal is the result of a handful of unscrupulous, vindictive individuals,” Ghosn had said at the conference.

The criminal charges that Ghosn is currently facing are for financial misconduct related to accusations that he had understated his annual salary and had misused company funds while he was in-charge of the company.

Accusations that Ghosn had also misappropriated money of the company for overseas events have also been brought by Nissan. Those alleged events included holding a party at the Palace of Versailles, France, and trips to Rio de Janeiro carnivals.

All accusations have been denied by Ghosn and he has claimed that the justice system in Japan is flawed and “rigged”.

With an estimated personal net worth of about $120 million and was considered to be one of the most powerful figures in the global car industry till the time that he was arrested and put behind bars.

The arrest of Ghosn and the turmoil following it had strained the relationship and alliance between the French car maker Renault, Nissan and another Japanese auto company Mitsubishi. This largest alliance of the global auto industry was forged by Ghosn. He was also the chairman of Renault and Mitsubishi before his arrest. He has since been ousted from the positions in all of the companies.

(Adapted from BBC.com)

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