Friday, 30 January 2015
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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."
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…