Lotus Sues Ex-CEO for Misuse of Company Funds

Group Lotus has sued former CEO Dany Bahar, seeking 2.5 million ($4 million) in alleged unauthorized expenses and overpaid salary and bonuses.

Lotus fired Bahar in June after an audit of his expenses and company operations and finances.

In the lawsuit, Lotus claims he spent about 1 million ($1.6 million) in company funds to rent and upgrade two U.K. properties and 1.2 million ($1.9 million) on travel, including private jets and a helicopter. Bahar also was reimbursed for such expenses as a chauffeur and wristwatches, according to the company.

Lotus parent DRB-Hicom Bhd says the CEO had done an "abysmal" job in his three years at the helm of the British boutique brand and claims he was "excessively extravagant and mercenary." Lotus has lost money since at least 1994.

Bahar sued the British sports car maker and DRB in August, seeking 6.7 million ($10.7 million) for wrongful dismissal. He has called Lotus' allegations of misconduct "ill-founded and unjustified."