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Nissan to Ghosn: Pony Up $91M

Automaker sues, citing 'years of misconduct and fraudulent activity' by Carlos Ghosn
By Newser Editors and Wire Services
Posted Feb 12, 2020 5:01 AM CST

(Newser) – Nissan filed a civil suit Wednesday seeking $91 million in damages from the Japanese automaker's former Chairman Carlos Ghosn, reports the AP. Nissan Motor Co. filed the case in Yokohama District Court to recoup some of the monetary damages suffered, it said, “as a result of years of misconduct and fraudulent activity" by Ghosn. The claim was calculated by adding the costs from what Nissan called Ghosn's “corrupt practices,” such as rent for overseas property, use of corporate jets, and payments to Ghosn's sister, as well as costs for the internal investigation into Ghosn's alleged wrongdoings. Ghosn's representatives said in a statement they couldn't comment as they had yet to see the legal documents. “Nissan's maneuvers continue,” they said, while noting Nissan had claimed larger damages before.

Ghosn, who led Nissan for two decades and saved it from near-bankruptcy, was arrested in Japan in November 2018, and charged with underreporting his future compensation and breach of trust in diverting Nissan money for personal gain. He was awaiting trial but skipped bail and showed up in Lebanon late last year. Japan has no extradition treaty with Lebanon, and he's unlikely to be arrested. A date had not been set for his trial, and Ghosn has said he was worried his ordeal would never end. Bail conditions also barred him from seeing his wife. He has repeatedly lashed out at Japan's judicial system, where the conviction rate is higher than 99%. Japanese authorities recently issued an arrest warrant for Ghosn and three Americans, accused of helping his escape. Separately, they issued an arrest warrant for Ghosn's wife on suspicion of perjury. Wednesday's lawsuit comes on top of the civil case Nissan filed against Ghosn in the British Virgin Islands in August last year. It alleged unauthorized payments, sought to regain a luxury yacht, and pursued other damages.

(Read more Carlos Ghosn stories.)

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