Hedge Funds Sue Porsche—Again

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.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note