Hedge Funds Sue Porsche Family Members

Feb 4 2014 | 12:33pm ET

The hedge funds suing Porche Automobil Holding are getting personal.

The funds, led by Elliott Management, have sued two members of the family that owns Porsche, both of whom sit on the company's supervisory board. Both Wolfgang Porsche and his cousin, Ferdinand Piech, were aware that the company was buying up Volkswagen shares in an effort to take control of the company, the funds allege. During that time, Porsche denied it had any intention to bid for VW.

That constitutes market manipulation, according to the lawsuit. Some two dozen hedge funds sued Porsche last year in Germany—after their case was thrown out in the U.S.—and Elliott, Perry Capital and other hedge funds filed their own antitrust case against Porsche a few months later.

Porsche said Sunday that the latest lawsuit was "unfounded" and that it, Porsche and Piech would "defend themselves with all available legal means."

Piech is a former chairman and CEO of VW.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...