Published 15:33 IST, February 12th 2020
Nissan sues Ghosn, seeking damages for property, jet use
Nissan filed a civil suit Wednesday seeking 10 billion yen ($91 million) in damages from the Japanese automaker's former Chairman Carlos Ghosn.
Advertisement
Nissan filed a civil suit Wednesday seeking 10 billion yen ($91 million) in dams from Japanese automaker's former Chairman Carlos Ghosn.
Nissan Motor Co. filed case in Yokohama District Court to recoup some of monetary dams suffered, it said, “as a result of years of misconduct and fraudulent activity" by Ghosn.
Advertisement
claim was calculated by ding 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 internal investigation into Ghosn's alleged wrongdoings.
Ghosn, who led Nissan for two deces and saved it from near-bankruptcy, was arrested in Japan in vember 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 Leban late last year. Japan has extrition treaty with Leban, and he's unlikely to be arrested.
Advertisement
A date h t been set for his trial, and Ghosn has said he was worried his ordeal would never end and he would t get a fair hearing. bail conditions also barred him from seeing his wife. He has repeatedly lashed out at Japan's judicial system, where conviction rate is higher than 99%.
Japanese authorities recently issued an arrest warrant for Ghosn and three Americans, accused of helping his escape. Separately, y issued an arrest warrant for Ghosn's wife on suspicion of perjury.
Advertisement
Ghosn has repeatedly said he is incent, saying that promised compensation h never been decided, and all payments were for legitimate services.
Wednesday's lawsuit by Nissan comes on top of civil case Nissan filed against Ghosn in British Virgin Islands in August last year. It alleged unauthorized payments, sought to regain a luxury yacht and pursued or dams, according to Nissan.
Yokohama-based Nissan, which makes Z sportscar, Leaf electric car and Infiniti luxury models, is also facing trial in Japan as a company in relation to Ghosn's scandal. It has indicated it will agree to any penalties.
Advertisement
Nissan's reputation has been sorely tarnished over Ghosn fiasco, and its sales have dropped. Nissan reports financial results Thursday. company is struggling to redefine its im and manrial leership after departure of Ghosn.
His successor Hiroto Saikawa tendered his resignation in September after ackwledging he h received dubious income. Saikawa said he did t kw about money. He has t been charged.
Also in question is Nissan's relationship with alliance partner Renault SA of France, top shareholder in Nissan. Ghosn, sent in by Renault to le Nissan, has said his arrest was set off by a conspiracy against him at Nissan.
Advertisement
15:33 IST, February 12th 2020