Despite court win, Porsche faces more VW lawsuits

Article by Christian A., on January 3, 2013

After the U.S. lawsuit filed by 26 hedge funds against Porsche SE was dismissed, the automaker’s shares rose on Friday. This is just one of several legal actions over its purchase of shares in Volkswagen, the biggest automaker in Europe. Porsche’s preferred shares in Germany went up by 6.3% to 61.70 euros, the highest price reached since January 2011.

However, analysts cautioned that Porsche’s win in court centered on a legal formality instead of the substance of the case. Last Thursday, a five-justice panel of the New York State appeals court in Manhattan determined that the state was the wrong place for the lawsuit to be filed.

So now, the hedge funds have 30 days to make a decision on whether they will pursue the lawsuit in New York's highest state court, the Court of Appeals. DZ Bank analyst Michael Punzet said Porsche still faced other lawsuits that remain pending. He explained that the ruling was based on the jurisdiction and not the claim itself.

There is still a pending $2 billion lawsuit by other hedge funds in a U.S. federal court. Porsche has so far not released a statement about its triumph in court. Previously, Porsche had said that the hedge funds' lawsuits are without factual and legal merit. Prosecutors in Stuttgart (which is Porsche’s headquarters) divulged last week that market manipulation charges against former Chief Executive Wendelin Wiedeking and former CFO Holger Haerter were tied to VW share purchases.

The lawyers of these defendants have denied that their clients committed any wrongdoing. The New York State appeals court had dismissed the case filed by hedge funds (which include Glenhill Capital LP, David Einhorn's Greenlight Capital LP and Chase Coleman's Tiger Global LP) that claim that Porsche caused over $1 billion of losses by cornering the market in VW shares.

The funds said that Porsche had made a public announcement that it didn’t have any plans to take a 75% stake. However, the funds stated that Porsche created a "massive short squeeze" in October 2008 by secretly purchasing almost all freely traded ordinary VW shares as it tried to take over the company.

Topics: porsche, vw, lawsuit

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries