by Christopher Freeburn | May 16, 2013 10:17 am
Luxury Italian sports car maker Porsche is facing a new lawsuit linked to its failed takeover bid for Germany’s Volkswagen (PINK:VLKAY).
An additional 25 hedge funds, including David Einhorn’s Greenlight Capital, Viking Global Equities and Glenhill Capital, are suing Porsche in German courts demanding damages of $1.8 billion. The new suits join a number of earlier suits that seek a total of $5.2 billion in damages, Bloomberg notes.
A number of U.S.-based funds are suing in German courts after agreeing to stop litigation against Porsche in the U.S. Porsche is still facing lawsuits from at least eight hedge funds in New York courts.
In their lawsuits, the hedge funds accuse Porsche of using stock options to deceive investors about its plans to try to purchased Volkswagen in 2008. German prosecutors have filed charges against Porsche former CEO and CFO, alleging that the executives attempted to manipulate share prices through the use of the stock options.
The former executives have denied the allegations. Porsche did not comment on the new lawsuits.
Last year, Volkswagen purchased the outstanding stake in Porsche for $5.9 billion.
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