New York (HedgeCo.Net) – A group of hedge funds led by Elliott International and Perry Partners are going up against Porsche, suing them for 1.81 billion euros (approximately $2.4 billion).
“After other investors lost two similar claims at a German tribunal last year, the funds added antitrust claims against Porsche to their suit, forcing a move to a court that specializes in cartel suits.” Bloomberg reports.
Porsche’s headquarters were raided in 2009 during investigations into allegations revolving around the failed takeover of Volkswagen, during which Porsche took large positions in VW stock. Prosecutors allege that inside information was leaked in pursuit of the failed bid. Porsche denied any disclosure irregularities but many hedge funds and investment management firms sued anyway.
German regulator BaFin dropped its initial investigation but re-opened it after claims that the incident was bringing the entire German stock market into disrepute.
A US federal judge dismissed a lawsuit by a group of 10 hedge fund in 2011 and a New York State appeals court dismissed a lawsuit brought by hedge funds against Porsche back in January of this year. A total of 24 funds have now withdrawn their appeal of an earlier court decision dismissing the case.
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