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Nissan sues its former Chairman Ghosn for USD 90m

Japanese car maker Nissan has filed a lawsuit against its former Boss Carlos Ghosn, an absconder now. The suit filed at Yokohama District Court seeks an initial amount of USD 90 million. The company announced that it aims to recover a significant part of monetary damages inflicted on the company by its former chairman. The auto-manufacturer added that it expects the amount claimed in damages would increase in future as the company expects to recover fines it is bound to pay to regulators due to Ghosn’s mismanagement and misconduct.

The statement further read that Nissan is also looking to do more in terms of litigation through a separate lawsuit over what it termed “groundless and defamatory” remarks hurled by Mr. Ghosn in a press he made in Beirut, Lebanon. Addressing in a media talk Ghosn said: “My unimaginable ordeal is the result of a handful of unscrupulous, vindictive individuals.”

The chairman is accused of allegedly understating his annual salary and misusing the funds of Nissan before turning into an international fugitive after managing to flee to Lebanon to reunite with his wife Carole Ghosn who is also blamed to have facilitated that great escape in Dec 2019. Nissan also chases its ex-boss for exploiting company’s resources for his overseas trips and personal benefits.

The events on the expense of the company include a party at the Palace of Versailles, France and trips to Rio de Janeiro carnivals. Ghosn dined the charges of financial misconduct in Japan and termed the Japanese justice system as rigged.

Mr. Ghosn with an estimated net worth of USD 120 million was one of the giants in global auto industry until his arrest in Nov 2018. The scandal could prove detrimental at a time when Nissan was seeking to ink an alliance deal with Mitsubishi and Renault.