Disgraced Nissan boss Carlos Ghosn sues former employer for $1bn

Carlos Ghosn, the former Nissan executive who escaped bail in Japan and fled to Lebanon, has filed a lawsuit against his former employer seeking $1 billion in damages. Ghosn, known for his role in the carmaking alliance between Renault, Nissan, and later Mitsubishi Motors, was arrested in Japan in 2018 on charges of financial misconduct related to underreporting his compensation. He evaded trial by secretly leaving the country and is now suing Nissan and individuals associated with the company for more than $1 billion.

Ghosn has submitted his claims to the public prosecutor in Lebanon's Court of Cassation, where he has been residing since his escape from Japan at the end of 2019. He spent over a year in Japanese custody or under strict bail conditions before managing to flee to Lebanon, a country that does not have an extradition treaty with Japan.

In his court filings, which were translated from Arabic to English, Ghosn is seeking compensation for the significant harm caused to his finances and reputation. He and his former colleague Greg Kelly, who was found guilty in a Tokyo court of aiding Ghosn in concealing a portion of his income from financial regulators, have consistently denied any wrongdoing.

Ghosn claims that the serious accusations against him will have long-lasting effects on his life and reputation, even if they are based on mere suspicion. In addition to the $588 million in lost compensation and costs, he is seeking $500 million in punitive measures. The lawsuit also implicates several individuals, including two Nissan board members, whom Ghosn alleges were part of a plot to remove him from the company.

Lebanon's public prosecutor has scheduled a hearing for September, although Nissan has stated that they have not received the lawsuit or been formally informed about it. Ghosn's legal claim, spanning 18 pages, outlines his plan to create a larger alliance between Nissan, Renault, Mitsubishi Motors, and Fiat Chrysler. He asserts that this initiative to solidify the partnership was the catalyst for a conspiracy within Nissan to force him out.

According to Ghosn, Nissan's attempts to provide adequate compensation to prevent him from potentially joining a rival automaker were later turned against him and used as a pretext to orchestrate his removal. In 1999, Ghosn was sent by Renault to help rescue Nissan from bankruptcy, and he eventually became the chairman of both companies and the alliance. The alliance expanded with the inclusion of Mitsubishi Motors in 2016, but recent difficulties prompted a renegotiation of certain aspects earlier this year in an effort to repair strained relations stemming from the initial deal.