Porsche faces German lawsuit related to the sale of Vw stock options in 2008

Article by Christian A., on January 25, 2011

A Stuttgart, Germany, district court divulged that the first lawsuit in Germany against Porsche Automobil Holding SE related to the sale of Volkswagen AG stock options in 2008 has been filed by an unidentified plaintiff, who is represented by Christoph von Arnim.

A court spokesman said that in the new lawsuit filed by Berlin-based law firm FPS Rechtsanwaelte & Notare, the plaintiffs want its EUR3.1 million ($4 million) loss compensated by Porsche and the German unit of Canadian lender Maple Bank.

These lawsuits represent a significant concern for Porsche's planned merger with Volkswagen, scheduled for 2011, since U.S. hedge funds sued the company for billions, putting the deal at risk.

Von Arnim said the plaintiff is claiming damages incurred on options bets after he relied on Porsche's public statements that it did not intend to take over Volkswagen.

Von Arnim said that by denying its intention, Porsche manipulated the price of VW shares to its own advantage, thus hurting market participants who relied on the adequacy of the information.

Some investors alleged that they were victimized when Porsche's banks secretly amassed a stake of VW voting shares as collateral against cash-settled options as part of the so-called "stealth takeover" of VW.

On Oct. 26, 2008, Porsche said it controlled most of VW's common stock, causing the shares to shoot up as short sellers rushed to cover their positions. [via autonews - sub. required]

If you liked the article, share on:

Topics: vw, porsche, lawsuit, germany

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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