A regional court in Germany stopped two investor lawsuits against Porsche, leaving the claimants with a loss of over 4 billion euro ($5.2 billion) in damages.
Wednesday, September 19th, presiding judge Stefan Puhle made the decision public at the court in Braunschweig, Germany, without presenting the reasons, which will be published at around 1100 CET (0900 GMT). In 2008 several German and US investors accused Porsche of hiding its plans to acquire VW and secretly piled up its holding. In March 2008 Porsche denied the rumors, which it dismissed as ‘speculation’ talk. In September 2009 the sportscar maker announced it controlled 46.2% of VW’s shares and it had options for another 31.5%, it had not previously disclosed.
This statement made shares increase to 1,005 euro in several days, making Wolfsburg-based automaker the most valuable company. Short-sellers quickly bought back stock they had previously borrowed to bet that Volkswagen’s shares will drop. Swiss investment company My Capital-MC and a German private investor, the ones who filed the lawsuits, seek 4.7 million euro compensation for losses caused by short-selling VW shares.
Although Porsche has dodged these two cases, there are still pending cases which are to be scheduled, among which those filled by Elliott Associates and other U.S. investment funds, which seek 2 billion euro damages.