The Strategist

Carlos Ghosn sues Nissan for $1bn for firing in 2018

06/22/2023 - 03:42

The former CEO of Nissan Motor, Carlos Ghosn, has filed a lawsuit against the firm and several related parties for his termination in 2018 and the subsequent planning of his arrest for financial irregularities. Mr. Ghosn is requesting $1 billion in damages in his complaint, which was submitted to the Court of Cassation in Lebanon, for the "serious damage" these activities have caused to his reputation and financial standing, reports Bloomberg on the case, which was filed on May 18.

World Economic Forum
World Economic Forum
The former top executive, who oversaw Nissan Motor's financial turnaround and was instrumental in forging the merger between Renault and Mitsubishi Motors, has been charged in Japan with concealing $74 million in earnings and misappropriating Nissan funds for personal advantage. Mr. Ghosn left Japan in late 2019 after being placed under house arrest for the duration of the probe. Carlos Ghosn escaped from court and made his home in Lebanon, where authorities have no plans to extradite him to Japan or other nations that are also requesting his extradition.

The "serious and sensitive allegations" against Mr. Ghosn, he claims in the May complaint, "will linger in people's minds for years to come." Even if the accusations are false and are the result of "mere suspicion," in his opinion, he will "suffer from this for the rest of his life." Mr. Gohn calculates that he has been shortchanged by $588 million since being fired from Nissan.

He is also requesting $500 million in punitive damages from Nissan in addition to this sum. Nissan is named as one of the defendants in the complaint along with a number of corporate employees, managers, and board members who the plaintiff claims had a hand in his termination. The lawsuit names more than a dozen defendants.