N.Y. Court Tosses Hedge Funds' Porsche Suit

Jan 2 2013 | 3:45pm ET

For the second time, a group of hedge funds has seen its lawsuit against Porsche SE tossed into the trash.

A New York State appeals court dismissed the $1.4 billion claim, which accused the automaker of manipulating the market in Volkswagen shares, secretly acquiring a majority stake before announcing plans to acquire VW. That plan never came to fruition, and VW in turn bought Porsche's sports-car franchise, but the hedge funds alleged unjust enrichment, anyway.

An earlier lawsuit was junked by federal courts in 2011. The New York Appellate Division ruled that there simply was too flimsy a link between the case and the court's jurisdiction.

“The only alleged connections between the action and New York are the phone calls between plaintiffs in New York and a representative of defendant in Germany, and the e-mails sent to plaintiffs in New York but generally disseminated to parties elsewhere,” the court ruled. “We find that these connections failed to create a substantial nexus with New York, given that the events of the underlying transaction otherwise occurred entirely in a foreign jurisdiction.”

More than two dozen hedge funds were involved in the lawsuit, including Elliott Associates, Glenview Capital Partners and Viking Global Equities.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR