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:

Pin It

Comments

Recommended

Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Since 1993, Lexus has produced 4 generations of the Lexus GS, with the GS F amongst its newest member of the family. Unfortunately, rumors are also heating up that the...
by - March 24, 2017
In a leaked image following a presentation held in China, we learned that Czech automobile manufacturer Skoda will soon unveil 2 more new SUVs in China, resulting in a four-model...
by - March 24, 2017
McLaren is said to be designing the next generation of Sports Series, which could include a V6 hybrid among its powertrain options. It was earlier reported that the British automaker...
by - March 24, 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