Carlos Ghosn Sues Nissan for $1B in Lebanon

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Facts

  • Carlos Ghosn, a global car industry titan who was arrested in Japan in 2018 for financial misconduct before fleeing the country, filed a $1B lawsuit in Lebanon against Nissan, which accuses the carmaker of defamation, slander, libel, and the fabrication of material evidence.1
  • The lawsuit asks for over 5% of Nissan's $16B market value — made public on Tuesday — and accuses two other companies and 12 people of related crimes, with a hearing reportedly scheduled for September. Nissan hasn't commented on Ghosn's allegations.2
  • The lawsuit was first filed at the Court of Cassation in Lebanon on May 18 and claims $588M in lost compensation as well as $500M in reputational costs. Those named in the lawsuit include several Nissan board members and senior managers.3
  • Ghosn spoke with AP News, detailing his legal troubles in Japan, France, and the Netherlands, his escape from Osaka, and reflecting on his new reality in crisis-hit Lebanon. He said that he was “shocked” after a Dutch court last week rejected his wrongful dismissal claim against an Amsterdam-based alliance between Nissan and Mitsubishi.4
  • Ghosn was originally charged with under-reporting earnings, breach of trust, and misappropriation of company funds in Japan in 2018. Though Ghosn says he was targeted for planning a merger between Nissan and Renault, his legal efforts are only focused on Nissan for now.2
  • Ghosn escaped from house arrest by hiding in a box on a private jet in September 2019, traveling first to Turkey and then to Lebanon, which refuses to extradite its citizens to any other country for trial, insisting on trying them on Lebanese soil. Lebanon has received three Interpol Red Notices since Ghosn escaped to the country.5

Sources: 1Reuters, 2BBC News, 3AL, 4Associated Press, and 5Arab News.

Narratives

  • Narrative A, as provided by Al Jazeera. Ghosn has a right to at least attempt to clear his name and use any available legal avenues to do so. According to Ghosn's claims, he would not have been able to get a fair trial in Japan, thus making it necessary for him to relocate somewhere else. Though it is unclear how Ghosn's legal campaign will conclude, he's within his right to fight to defend himself and preserve his reputation.
  • Narrative B, as provided by L'Orient Today. Ghosn's decision to hide out in Lebanon is emblematic of how the country has turned into a safe haven of financial criminality. When wealthy Lebanese citizens commit financial crimes abroad, they can always be relatively certain that they will be able to flee to Lebanon to avoid accountability.