New York Court denies Porsche’s request to dismiss VW lawsuit

Article by Anita Panait, on August 10, 2012

New York State Supreme Court Justice Charles Edward Ramos has rejected a motion by Porsche SE to dismiss a lawsuit alleging that the carmaker hid plans to corner the market in Volkswagen AG shares. According to Ramos, the core of the claims against Porsche by 26 hedge funds including Greenlight Capital Inc. and Glenhill Capital LP is whether New York courts may hold a foreign entity responsible for fraudulent misrepresentations aimed at plaintiffs in the state.

Porsche vowed to appeal the ruling. The court rejected Porsche's characterization of the issues in lawsuit as the manipulation of the German stock market and the trade of German securities.

Ramos wrote in his opinion that New York has a vested interest in such an action. The hedge funds, which bet that Volkswagen stock would drop, claim that Porsche misled investors by denying through much of 2008 that it planned to buy Volkswagen and by using manipulative trades to hide its stock positions.

Porsche disclosed on Oct. 26, 2008, that it controlled most of Volkswagen's common stock, causing the shares to soar with short-sellers racing to cover their positions. Under New York rules, the court "assumed the truth of the hedge funds' allegations without ruling on the merits of their claims," Porsche said in the statement. The carmaker said it continues to believe that the hedge funds' lawsuits are without factual and legal merit.

Topics: porsche, vw, lawsuit

If you liked the article, share on:

Comments

Recommended

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
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
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