Nissan Motor Co Ltd (ADR) (OTCMKTS: NSANY) Investor Securities Class Action Lawsuit 12/10/2018

If you purchased shares of Nissan Motor Co Ltd (ADR) (OTCMKTS: NSANY), you have certain options and for certain investors are short and strict deadlines running. Deadline: February 8, 2019. Nissan Motor Co Ltd (ADR) (OTCMKTS: NSANY) investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Nissan Motor Co
Case Name: 
Nissan Motor Co Shareholder Class Action Lawsuit 12/10/2018
Case Status: 
Lawsuit Filed
Affected Securities
OTCMKTS: NSANY
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/10/2018
Class Period Begin: 
12/10/2013
Class Period End: 
11/16/2018
Court of Filing: 
U.S. District Court for the Middle District of Tennessee
Deadline To File for Lead: 
02/08/2019
Summary: 

An investor in shares of Nissan Motor Co Ltd (ADR) (OTCMKTS: NSANY) filed a lawsuit in the U.S. District Court for the Middle District of Tennessee over alleged violations of Federal Securities Laws by Nissan Motor Co Ltd in connection with certain allegedly false and misleading statements made between December 10, 2013 and November 16, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of Nissan Motor Co Ltd (ADR) (OTCMKTS: NSANY) common shares between December 10, 2013 and November 16, 2018, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between December 10, 2013 and November 16, 2018, Nissan has been materially understating its expenses – and overstating profits – by concealing half of the annual executive compensation it was obligated to pay its former Chief Executive Officer (“CEO”) and Chairman of its Board of Directors (“Board”), defendant Carlos Ghosn (“Ghosn”), in order to avoid shareholder scrutiny of Ghosn’s inordinately high executive compensation.

The plaintiff alleges that over the past decade, Nissan reported paying defendant Carlos Ghosn ¥1 billion per year in compensation, that in truth, Nissan paid defendant Ghosn an additional ¥1 billion per year in the form of deferred compensation I.O.U.s, but failed to disclose these payments in the Company’s publicly filed financial reports, and that as a result, Nissan underreported defendant Ghosn’s true pay over the decade by an estimated ¥10 billion.

The plaintiff also claims that Nissan concealed from investors the significant defects in its corporate governance and internal controls that facilitated this false financial reporting, and affirmatively failed to heed the express direction of its outside auditors dating back to at least 2013 to accurately report its executive compensation, and that not only did the underreporting deceive Nissan’s investors, it violated the pay cap Nissan shareholders approved.

On November 19, 2018, Nissan Motor Co., Ltd disclosed that the company’s Representative Director and Chairman Carlos Ghosn and Representative Director Greg Kelly had for years underreported compensation amounts in Tokyo Stock Exchange securities reports to reduce the disclosed amount of Ghosn’s compensation. Nissan Motor Co., Ltd. disclosed other “significant acts of misconduct” by Ghosn, including personal use of company assets. According to Nissan, Kelly was also “deep[ly] involve[d.]”

Shares of Nissan Motor Co., Ltd. (OTC: NSANY) declined to as low as $16.28 per share on November 19, 2018.