German Court Sees 'Obstacles' For Hedge Funds' Porsche Lawsuit

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.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...