The manager was sued for misappropriating public funds to buy a luxury car.

misappropriating 是动词 misappropriate 的现在分词形式。misappropriate 由前缀 mis-（表示"错误地、不当"）和动词 appropriate（挪用、占用）组成，字面意思是"不当挪用"，特指"挪用（公款等）"的行为。