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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note