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Nissan Demands $90M In Damages From Former Chairman Carlos Ghosn

Shivdeep Dhaliwal

Nissan Motor Co Ltd (OTC: NSANY) has filed a civil lawsuit against its former chairman Carlos Ghosn demanding JPY 10 billion ($91.02 million) in damages.

What Happened

Nissan released a statement on Wednesday saying it had filed a civil lawsuit against Ghosn at the Yokohama District Court in Kanagawa, Japan.

The company is seeking damages related to Ghosn’s alleged breach of fiduciary duty as a company director and for allegedly misappropriating Nissan’s resources and assets.

The Japanese carmaker’s statement said. “The size of the damages claim is expected to increase in future as Nissan seeks to recover fines to be paid to the Japanese Financial Services Agency and likely penalties imposed on the company in criminal proceedings related to Ghosn’s misconduct.”

Why It Matters

The case filed in Yokohama is the latest in the series of legal actions taken by Nissan and Ghosn against each other.

Nissan has already filed a lawsuit against Ghosn in the British Virgin Islands (BVI). The Japanese company has managed to obtain an order in the BVI to stop the sale of Ghosn family yacht.

Separately, Nissan and Mitsubishi Motors Corp. (OTC: MMTOF) have been scrutinizing payments made to Ghosn from their Dutch Joint Venture. The carmakers have already challenged a salary and bonus that Ghosn granted himself without the knowledge of the boards of the two companies.

Nissan and Mitsubishi’s allegations of financial impropriety in the Netherlands against Ghosn come after he filed a suit in July 2019 against both carmakers for wrongful dismissal. Ghosn is seeking EUR 15 million ($16.8 million) in compensation.

On Monday, the lawyers of Ghosn and Nissan came face-to-face for the first time since Ghosn escaped Japan at the end of December 2019.

In its statement, Nissan said that the company had intensified its campaign to recover damages from its former Chairman following his “illegal” fight from justice.

They added, “Nissan also reserves the right to pursue separate legal action over groundless and defamatory remarks made by Ghosn in comments to the media following his escape to Lebanon in violation of his bail conditions in Japan.”

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