The sequence of events from 2007 that began with Porsche's secret attempt to take over Volkswagen, and instead lead to Porsche being taken over by VW, continues to instigate lawsuits against the Stuttgart sports car manufacturer. A group of hedge funds that suffered over $1 billion in losses sued the car company in New York. Porsche had publicly stated it wasn't trying to buy VW, the hedge funds in question were shorting VW stock, and when Porsche's actual intentions were revealed, the stock shot up and the hedge funds took a beating.

The case was thrown out over the issue of jurisdiction, then appealed, only to see another suit filed on top of that. After that, most of the hedge funds withdrew their claims in New York and Porsche offered a 90-day window to refile in Germany where it is already fighting a number of other suits over the same issue. The hedge funds accepted the offer, refiling in Stuttgart for $1.8 billion in damages. According to Bloomberg, Porsche hasn't commented on the refiling, but as the same plaintiffs are involved, it's safe to assume that the carmaker still feels the case is "unsubstantiated and without merit." It has fared alright so far even in German courts, with two lesser cases against it thrown out last year.


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    • 1 Second Ago
  • 25 Comments
      m_2012
      • 1 Year Ago
      Who cares? A bunch of banksters who were gambling on someone else's loss took a hit. Boohoo, move on.
      Rich
      • 1 Year Ago
      You tried to make $ by taking a position, it didn't work out, so you sue? I dont get that.
      The Wasp
      • 1 Year Ago
      Similar cases thrown out in German courts...what a surprise.
      realrambo
      • 1 Year Ago
      An edge fund lost 1 billion . no one in their right mind would feel sorry for a bunch of vultures . These are the very peoples which sold the US Economy to China , why don't they name the edge fund ????
      splintercottage
      • 1 Year Ago
      The idea of shorting itself is to use someone elses capital to take advantage of the same entity and remove that capital based upon time and book keeping. This is the finance crew. For whom honesty is a weakness and are qute capable of "misplacing" billions of dollars of other peoples money.. NOw guess who wants honest transactions ... of course when they don't go against you. Its one thing to sue the casino. Its another to turn everything into a casino and then sue everything.
      mike at home
      • 1 Year Ago
      Every one wants to make a fast buck this buying stocks is just another gamble hope the courts throw out the case
      Cory Stansbury
      • 1 Year Ago
      I will be the first to admit I don't get too deep into the whole investing game and the ins and outs...but how does this case have any merit at all? "I made an investment and your company actions caused me to lose money. I'M ENTITLED TO RETURNS ON ALL INVESTMENTS AND YOU HURT MY FEELINGS!"
      Matt
      • 1 Year Ago
      If some lunatic proclaims that the world will end tomorrow, so I spend all my money on hookers and drugs, then it turns out the world didn't end, can I sue the lunatic? Everything Wall St. does that isn't taking an equity position is just a leech on the economy.
      amosbyrd
      • 1 Year Ago
      What a bunch of Bull, or Lamborghini. Hedge Funds are pure gambling operations. Given free rain in the 1940s by the GOP, to do as they like. Instead of coming under the common man's rules & laws. Option Trading is just another form of legalized gambling. So, these jokers placed a few wrong bets and got clobbered. GOOD!! I hope Porsche counter sues these losers and recovers ever dime they spent fighting this gamblers.
        John
        • 1 Year Ago
        @amosbyrd
        Excuse me wtf does the GOP have to do with this? Porsche is not headquatered in the U.S. and our laws do not apply to what it did in Europe so stfu go back to listening to fox news.
        edward.stallings
        • 1 Year Ago
        @amosbyrd
        George Soros, one of the chief donors of the democrat party in the US and communism in general, is among the most famous and abusive hedge fund operators...
      alankar.chandra
      • 1 Year Ago
      no worries!!!! no one take over the luxury and quality of Porsche
      David
      • 1 Year Ago
      I am sure that if they made the correct "bet" they would not be sharing the profits with Porsche. This looks a bit like insider trading if you know the outcome or have insider knowledge of how something is going to go. Too Bad So Sad.
      realrambo
      • 1 Year Ago
      1200 peoples died in Bengladesh in a factory , the toll is expected to reach 1500 , why ? To satisfy the greed of these edges funds . they are the one operating att the fringe of the banking system with little or no oversight , they are the one manipulating oil prices , they are the one with countless offshore bank account to avoid the taxes , they are the one that sold our jobs to India , China and yes Bengladesh , should anyone feel sorry for them , the answer is no . You play with fire you get burned.
        edward.stallings
        • 1 Year Ago
        @realrambo
        Hedge funds are not responsible for people dying or the price of oil. They are nothing but losely defined trading firms. You can do anything they do. It is legal. Don't feel sorry for them, but don't blame them for all this BS.
          Sam Diamond
          • 1 Year Ago
          @edward.stallings
          Actually you cant do anything they can, you need large amounts of money to get the trading rates they do. Stop acting like the system is all-inclusive, its not.
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