Hedge Funds Porsche
Hedge Fund Managers' Lawsuit Against Porsche Dismissed
The lawsuit brought by hedge fund managers against Porsche over its 2008 takeover of Volkswagen AG has been dismissed. The fund managers alleged that Porsche's takeover amounted to market manipulation, but a US district court judge disagreed and dismissed the $2 billion lawsuit.
A U.S. district court judge in New York on Thursday dismissed a lawsuit filed by a group of hedge-fund managers alleging market manipulation in Porsche's 2008 Volkswagen AG takeover bid.
Judge Harold Baer Jr. ruled that U.S. securities laws didn't apply in the case because alleged market manipulation occurred outside the United States and isn't subject to the U.S. Securities Exchange Act. In January, a group of hedge funds filed suit in federal court in Manhattan seeking damages of over $2 billion against Porsche Automobil Holding SE, its former chief executive, Wendelin Wiedeking, and its former chief financial officer, Holger Haerter.
The group of hedge-fund managers—which included Elliott Associates LP, Glenhill Capital LP and Perry Partners LP—felt Porsche misled investors when in October 2008 the company announced that it had access to almost 75% of Volkswagen's ordinary shares, pushing up the price of the stock as short sellers scrambled to cover their positions. Source
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