Ex-Lotus CEO Dany Bahar has settled a claim for unfair dismissal with Lotus owner DRB-Hicom a month before the case was scheduled to go to court.
DRB-Hicom announced on Bursa Malaysia last week that “the parties involved in the legal suit have signed a Settlement Agreement and Release on 14 May 2014 and have agreed to withdraw their claims against each other.
“The above arrangement is not expected to have any major impact on the financial or operations of the Group,” the statement added.
Bahar was suspended in May 2012 after a complaint regarding his conduct and investigations led to him being sacked the following month. The 43-year old then filed a 6.7-million pound (RM36 million) claim against Lotus and DRB-Hicom for wrongful termination.
DRB-Hicom apparently wasn’t happy about the way Bahar was using company money – The Mail Online reported at the time that he was found to have spent hundreds of thousands of pounds on his rented home, and more than a million pounds on private aircraft to fly him to Formula One races and other global events.
Bahar’s friends defended him by saying that he insisted the spending was part of his employment contract, which was agreed with Proton.
Architect of an ambitious five-year plan at Group Lotus, Bahar joined the Hethel-based company as CEO in 2009 from Ferrari, where he was a senior vice president. Prior to that, Bahar worked at Red Bull GmbH and Fritz Kaiser Group.