Nissan: Claims against Carlos Ghosn of 10 billion yen: in Yokohama District Court

Nissan: Claims against Carlos Ghosn of 10 billion yen: in Yokohama District Court

Nissan: Carlos Ghosn

2020/02/12

Nissan Motor Corporation has filed a lawsuit against Carlos Ghosn today in the Yokohama District Court for damages.

The lawsuit seeks ¥ 10 billion in damages from Carlos Ghosn to “recover the damage caused by the misconduct by the former chairman.”

This time damages: main things

Violation of the Financial Instruments and Exchange Act: Violation of the Financial Instruments and Exchange Act related to false descriptions of executive compensation,
Violation of duty of care: violation of duty of care as director
Diversion of company funds / assets: seeking damages for private diversion,

Current compensation amount:

Payment of fines to the Financial Services Agency based on the recommendations of the Securities and Exchange Surveillance Commission,
Fines imposed in criminal proceedings against the Company,

Current Compensation: Basis for Calculation

Calculated based on the costs incurred by Carlos Ghosn’s misconduct over the years.

This wrongdoing: as below

Fraudulent spending by CEO reserve,
Free use of overseas housing,
Payment to his sister,
Donations to Lebanese educational institutions,
Payment to Lebanese lawyers,
Private use / payment of corporate jet
Resources required for internal investigations into fraud
Authority investigation costs in Japan / US / Netherlands / other regions

Previous Misconduct: Claiming Compensation

On August 30, 2019, a civil suit is pending against Carlos Ghosn and its affiliates (registered in the British Virgin Islands) seeking attribution and compensation for a luxury yacht.

Carlos Ghosn conducted unauthorized transactions through a special purpose company in the British Virgin Islands.

NISSAN GLOBAL NEWS

https://global.nissannews.com/ja-JP/releases/release-a90338a1553e91015b66e2ea9a02bf1a-200212-02-j

Nissan and Ghosn’s compensation for damages of 10 billion yen @ “Longtime misconduct” | Business | Latest Articles | Newsweek Japan Official Site

https://www.newsweekjapan.jp/stories/business/2020/02/100-55.php

Lawyers claim Ghosn took millions from Nissan-Mitsubishi venture

https://www.aljazeera.com/amp/ajimpact/lawyers-claim-ghosn-millions-nissan-mitsubishi-venture-200210173748605.html

Former Chairman Ghosn claims 10 billion yen for Nissan, likely to increase | Kyodo News

https://this.kiji.is/600240912009512033