Hedge Funds Porsche Law Suit
Hedge Funds Appeal Dismissal of Porsche Law Suit
Several hedge funds have decided to appeal last year's decision by a court to dismiss their case against Porsche. The group of hedge funds are led by Elliott Associates and Black Diamond Offshore Ltd in a $2 billion suit alleging that the German carmaker deceived the market about its plans to buy Volkswagen.
The hedge funds filed notices of their appeal in Manhattan federal court late on Friday.
The hedge funds had claimed the Stuttgart-based carmaker deliberately deceived the market as to its intentions to acquire Volkswagen, publicly denying plans to take over the company while quietly buying nearly all the freely traded ordinary shares of Volkswagen.
When Porsche revealed its holdings in October 2008, shares of VW soared, triggering losses at the hedge funds, which had bet on a decline in VW shares.