12 Hedge Funds Drop Out of Porsche Suit

Mar 8 2013 | 8:52am ET

Porsche Automobil Holding said 12 hedge funds—including Elliott Associates—have decided to drop out of a suit accusing the German automaker of market manipulation.

Their departure, which must be approved by the Federal 2nd U.S. Circuit Court of Appeals, will leave 20 hedge funds pressing the suit, according to a Porsche press release.

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.

The dismissal was later brought to the federal 2nd U.S. Circuit Court of Appeals.

Porsche also said the move does not affect a separate lawsuit, for damages of €1.8 billion, the hedge funds are pursuing in a court in Germany's Braunschweig.

Porsche said it considers the actions to be "inadmissible and the alleged claims to be without merit."


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note