Porsche Lawsuit Might Have Been Assigned to Cartel Court in Germany image

According to an anonymous source, a German court assigned to a court specializing on cartel matters the investor lawsuit seeking 2 billion euro damages from Porsche.

The Braunschweig court, Germany, will be the one to delegate the case which was brought by US investment funds to a court in Hanover that specializes in cartel matters, according to the source. The fact that the case was assigned to a specialist court gives hopes to plaintiffs that they might get a hearing from judges that are more familiar with the technicalities of financial markets.

Several US and German investors claim that Porsche did not reveal its plans to acquire VW, therefore secretly piling up its holding in the largest car maker in Europe. In March 2008 Porsche denied rumors that it planned to take over VW and seven months later he was announcing that it controlled 42.6% of the German automaker’s common shares.

At the beginning of this month a German court gave former Porsche CFO Holger Haerter a 630,000-euro fine for credit fraud in a criminal case over VW’s failed acquisition. Haerter was accused of downplaying Porsche’s liquidity needs and for not disclosing the correct number of VW’s shares owned by Porsche during the company’s negotiations with BNP Paribas about the lender’s share worth 500 million euro of the syndicated loan.

Source: Reuters