A court in the United Arab Emirates ruled on Thursday that carsA local partner needs to be compensated for 1.3 billion dirhams ($354 million) for violating car distribution agreements in the region.
The company, Al Dahana FZCO, was founded by people linked to former Nissan chairman Carlos Ghosn, which accused Nissan of violating its contractual obligations in 2019, just months after Mr. Ghosn was arrested in Tokyo. Ghosn later fled Japan to avoid trial and now lives in Lebanon.
Nissan said its partnership with the company ended in 2019 and had fully fulfilled its contractual obligations and legal proceedings were still under way in the United Arab Emirates. "We believe that Nissan has been taking appropriate action from beginning to end, and we look forward to resolving this issue through Dubai courts for the benefit of our employees, customers and stakeholders," a company spokesman said in an emailed statement. "
Nissan has been dealing with a number of legal issues since Mr Ghosn's arrest. Ghosn sued Nissan in 2019 and demanded compensation, which in turn sued the former chairman. There are also legal procedures in France and the Netherlands. Last month, Nissan agreed to settle a class action lawsuit in the United States. The lawsuit was initiated by investors who said they were misled about Mr. Ghosn's pay. The trial of Greg Kelly, Ghosn's accomplice, is still under way in Japan and the verdict will be handed down in March next year.