Anti Porsche Lawsuit luxury autos for 2010: In a continuation of the Porsche-Volkswagen takeover/stock controversy, 18 hedge funds added their names to a list of people taking Porsche to court in a $2 Billion lawsuit here in the States.
Porsche, Wendelin Wiedeking (former CEO), and Holger Härter (former CFO) are said to have committed fraud and “manipulated the market” over a four-year period in order to keep the company out of bankruptcy.
The alleged shady dealings were “an attempt to recoup large losses suffered by [Porsche, Wiedeking, and Härter] after a VW share price surge in 2008 triggered by Porsche’s takeover attempt on Europe’s largest carmaker.”
Porsche is said to have taken advantage of “a special type of options” which can be hidden (or not disclosed) according to laws in the Fatherland, in order to prevent the public from seeing exactly how much it had invested in VW.
In a statement, Porsche said: “We are currently examining the charges made in the lawsuit’s amended version and if necessary we will defend ourselves against those charges.”
People in contact with the various funds taking Porsche to court say damages claimed could be as high as $10 Billion. Ouch.