Nissan has said that it will pursue "appropriate legal action" against its former CEO Carlos Ghosn, despite his recent escape from Japan.
In its first public statement after Carlos Ghosn fled from Japan last week, car manufacturer Nissan announced its plans to take legal action against the former executive for "serious misconduct," including allegations of under-reporting his income and using company assets for personal benefit.
Nissan's statement said: "The company will continue to take appropriate legal action to hold Ghosn accountable for the harm that his misconduct has caused to Nissan."
In late 2018, Ghosn was taken into custody in Tokyo on on suspicion of financial misconduct, leading to his removal from positions at Nissan and its automotive alliance with Renault and Mitsubishi Motors. He denied the allegations and claimed that his arrest was part of a plot to remove him from the empire he built.
When he made his escape to Lebanon last week, he was under strict bail conditions in Tokyo. Ghosn has since criticized Japan's criminal court system, claiming that he was held hostage. The country's criminal court system is known to have an incredibly high conviction rate.
Nissan labeled Ghosn's escape as "an act that defies Japan's judicial system." The automobile company also said that consequences of the former auto executive's misconduct "have been significant," with the US conducting a probe into him as well as investigations being held in France.
In September 2019, Ghosn agreed to a $1 million settlement with the US Securities and Exchange Commission regarding allegations that he hid compensation received from Nissan. The SEC case was a civil charge and as part of the settlement, he did not admit to any wrongdoing.
On the other hand, the charges he is facing in Japan are criminal in nature. The automobile firm has pledged to continue cooperating with judicial and regulatory authorities wherever necessary.
