A group of New York hedge funds have filed suit against Porsche for cornering the market on Volkswagen stock, according to Reuters. The lawsuit claims that the German automaker caused $1 billion in losses by discreetly buying up every freely traded share of Volkswagen stock in an attempt to take over the company in 2008. When Porsche revealed what it had done, Volkswagen stock prices leapt. The hedge funds, meanwhile, had bet big that Volkswagen shares would actually see a dip, and the reversal caused major losses.
The plaintiffs include Greenlight Capital LP, Tiger Global LP, Glenhill Capital LP and Glenview Capital Partners LP among others.

Porsche has rejected the allegations as inadmissible and unsubstantiated. Some of the hedge funds included in this lawsuit were part of a similar filing that failed against the automaker last year. That lawsuit caused some concern about whether or not Porsche's merger with Volkswagen would sail on smooth seas, but thus far, at least, investors seem less concerned about the latest legal woes.

[Source: Reuters]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • From Our Partners

    You May Like
    Links by Zergnet
    Share This Photo X