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

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of