Wednesday, 26 April 2017
Last updated 1 day ago
May 13 2013 | 10:42am ET
The battle between more than two dozen hedge funds and Porsche Automobil Holding is back on—in Germany.
As promised, 25 hedge funds that had been suing the automaker for market-manipulation in both federal and state courts in New York have moved their litigation across the Atlantic. The hedge funds dropped their U.S. cases in February and agreed to bring the case in Germany; Porsche, for its part, gave the hedge funds 90 days to do so.
According to the hedge funds, Porsche secretly acquired a majority stake in Volkswagen before announcing plans to acquire it. While that plan never came to fruition, thanks in part to the hedge funds' lawsuit, the funds allege unjust enrichment all the same.
Two former Porsche executives are facing criminal charges over the alleged manipulation.
The hedge funds, including Glenhill Capital, Greenlight Capital and Viking Global Investors are seeking €1.4 billion in the new lawsuit, filed in Stuttgart, Porsche's home city.