Nissan and Ghosn to butt heads in court

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Words: NZ Autocar
14 Feb 2020

In what seems to be a response to Carlos Ghosn recently filing suit against his former employer for wrongful dismissal, Nissan has responded with a filing of its own against the former chairman, seeking 10 billion yen ($NZ141 million) in damages they claim he inflicted through alleged financial misconduct and fraud.

"The financial damages claimed by Nissan are linked to Ghosn's breach of fiduciary duty as a company director and his misappropriation of Nissan’s resources and assets," the company said in a release. The damages it seeks are based on costs supposedly incurred due to Ghosn and his "corrupt practices over many years."

The former head of Nissan jumped bail in Japan at the end of December and fled to Lebanon, where he is considered safe because officials seldom extradite its citizens.

Ghosn had been awaiting trial in Japan on four counts of financial misconduct during his time heading Nissan. He denies all charges and says he felt compelled to flee from Japan because it would be impossible for him to get a fair trial there.

More legal action may be imminent. Nissan said it reserves the right to pursue court remedy for “groundless and defamatory remarks” made by Ghosn to the media after his escape to Lebanon.

Ghosn’s lawyers contend Nissan’s filings are “part of the character assassination campaign against the former executive”. They add “Nissan is trying to create a diversion on the eve of the Japanese group’s worst expected financial results since 2009.”

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