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May 27, 2021

Nissan sued by overseas investors over Ghosn arrest

Angry foreign investors are suing Nissan Motor over the share price slump following the arrest of former chairman Carlos Ghosn.

By Graeme Roberts

Nissan Motor is facing a lawsuit from a group of around 90 institutional investors based outside Japan who claim they suffered huge financial losses after the carmaker brought financial misconduct charges against its former chairman Carlos Ghosn.

The investors, based mainly in the UK, Germany and the US, are demanding a combined JPY44bn (US$400m) in compensation for losses they incurred after the share price plunged in the wake of the charges brought against Ghosn and company executive Greg Kelly in November 2018.

Ghosn subsequently jumped bail and fled Japan to escape what he described as the “country’s rigged justice system” and is trying to clear his name in law courts in Europe. Kelly remains in custody in Japan and is currently on trial for his part in the alleged underreporting of Ghosn’s earnings by billions of yen over a number of years.

The investors, who are said to have traded Nissan shares through financial institutions since before June 2011, claim Nissan could easily have forecast a drop in its share price as a result of damage to the trust in its accounting and corporate governance once the legal proceedings were reported in the media.

Nissan Motor, which has yet to comment of this development, has also been indicted in connection with Ghosn’sĀ alleged financial misconduct.

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