Porsche, Vw facing $2.3 billion claims for holding back information from shareholders

Article by Christian A., on January 9, 2012

Porsche and Volkswagen are faced with numerous claims, totaling to around 1.8 billion euros ($2.3 billion), for supposedly holding back vital information from shareholders. The court said that one more lawsuit was filed against two German car companies, according to a spokeswoman for the court in Braunschweig, Germany. The extent of the damages weren’t divulged.

Porsche is accused of misleading investors about the number of shares in VW that it had at the time, resulting to a "short squeeze" that boosted VW shares. When Porsche announced that it controlled 74.1% of VW's voting stock in October 2008, the VW shares surpassed 1,000 euros apiece, with a more than a quadruple increase in a matter of days.

For a brief period, VW was the world's biggest company by market value. However, we all know that Porsche's attempt to take over its peer failed and backfired. Last year, Volkswagen had to delay a planned merger with Porsche Automobile Holding, the legal entity used in Porsche's takeover attempt of VW, in part due to the legal onslaught brought by investment funds. [source: Guardian]

If you liked the article, share on:

Comments

Recommended

A lot of us know Singer Vehicle Design and their signature work of reimagining Porsche 911s, and making them look like hot rods from the 70s. They are not alone...
by - August 20, 2017
August 17, 2017 is a sad day for the Dodge Viper, its fans, enthusiasts and its admirers. It is the day when the last Dodge Viper rolled off the assembly...
by - August 20, 2017
A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 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