Thursday, 23 February 2017
Last updated 15 min ago
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.