Sunday, 26 June 2016
Last updated 1 day ago
Aug 19 2014 | 6:33am ET
The hits keep coming from both sides of the Atlantic for hedge funds suing Porsche Automobil Holding for alleged market manipulation.
After considering the matter for more than two years, a federal appeals court in Manhattan on Friday upheld a lower-court ruling that dismissed the hedge funds’ lawsuits against Porsche. The U.S. Second Circuit Court of Appeals found that the late U.S. District Judge Harold Baer was correct to throw the claims out on the grounds that Porsche’s secret purchase of a majority stake in Volkswagen occurred abroad.
The alleged manipulation was “so predominately foreign” that U.S. courts could not claim jurisdiction under a 2010 U.S. Supreme Court decision, the appeals panel ruled.
The rejection follows the dismissal of one of the hedge funds’ lawsuits in Germany, where the litigation moved last year under an agreement between the funds and Porsche. Some claims are still pending in Germany.
The hedge funds, which include Elliott Management and Greenlight Capital, could “conceivably” show that U.S. laws might apply to the case, the Second Circuit said. The court said they could refile an amended lawsuit if they chose.