Tuesday, 30 August 2016
Last updated 30 min ago
Feb 14 2014 | 9:24am ET
A German court has expressed skepticism about a market-manipulation lawsuit against Porsche Automobil Holding filed by more than two dozen hedge funds.
The hedge funds, including Glenhill Capital, Greenlight Capital and Viking Global Investors, allege that Porsche secretly acquired a majority stake in Volkswagen before announcing plans to acquire it. Two former Porsche executives are facing criminal charges over the alleged manipulation.
But a judge in Stuttgart said that the lawsuit, filed last year after the hedge funds agreed to abandon their efforts to sue Porsche in the U.S., warned this week that "there's a whole series of obstacles that need to be overcome."
"We see considerable litigation risks for the plaintiffs," Carola Wittig said.
The hedge funds are seeking €1.4 billion.