Porsche announced that 12 more hedge funds have dropped the US court appeal on the VW suit.
Until now 24 funds have withdrawn their appeal of a previous court decision to dismiss the case, therefore only 8 plaintiffs will continue to contest the ruling. Yesterday Porsche sad it is confident that the company will win the lawsuits, many of which have been transferred to a German court.
“We’re optimistic about our prospects,” Martin Winterkorn, CEO of both Porsche SE and Volkswagen, said at the meeting in Leipzig, Germany. “We continue to view all pending lawsuits against Porsche SE as unfounded.”
Porsche faces the lawsuits due to the strategy it used to get control of VW in 2008-2009. Although the company announced in October 2008 that it owned 74.1% of VW’s common stock and planned to buy another 1% to reach the threshold for a complete takeover under the German law, plaintiffs have accused the automaker of hiding about its plans.
“We are taking a focused approach to the other legal dispute in order to guard Porsche SE against the alleged claims,” Winterkorn said.
Last week VW said that the addition of Porsche helped the brand offset the fall in operating profit during the first quarter, caused by the recession in Europe. The profit for VW brand reached 590 million euro, dropping 9 percentage points to 25% of the total. Porsche, which has been merged with VW in August, accounted for 24% of the automaker’s earnings.
Source: Automotive News Europe