Wednesday, 4 May 2016
Last updated 12 hours ago
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."