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Germany: Defunct Porsche, Volkswagen merger launches billion-dollar lawsuit

 |  August 16, 2013

Hedge funds are reportedly suing luxury carmaker Porsche SE $2.4 billion the plaintiffs claim they lost following the failed merger plans between Porsche and Volkswagen AG. The lawsuit claims Porsche manipulated Volkswagen share values by not offering interest before submitting a bid for the company, essentially lying about wanting to acquire the competing car company. Similar claims were unsuccessfully brought to a German tribunal last year, but reports say this lawsuit is now adding claims against Porsche that requires the case to enter into a cartel court. Even if claims are rejected, say reports, the court will be forced to look into the allegations of market manipulation itself.

Full Content: Bloomberg

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