According to a German judge, the hedge funds that seek to recuperate damage worth .2 billion euros ($1.4 billion) from Porsche SE might have to look elsewhere for the money, with the lawsuit pending dismissal.
The hedge funds initiated the lawsuit as a result of the Porsche SE’s failed attempt to take full control over German rival Volkswagen AG back in 2008. “On balance it’s our view that we consider the lawsuit, or the appeal, to be unpromising for several reasons,” commented Gerhard Ruf, judge at the higher regional court in Stuttgart just ahead of a new hearing of the case. “We are inclined to dismiss the case,” he said in the end. Two dozen hedge funds, among them Viking Global Investors, Glenhill Capital and Greenlight Capital decided to accuse a year ago Porsche SE – an investment company, not the carmaker per se – that it concealed a strategy to purchase Volkswagen and carefully plotted to increase its stake in the largest carmaker in Europe back in 2008.
The case combines 1.36 billion euros in damage claims and is just one of the several civil cases now in separate German courts, seeking a total of more than 5 billion euros in compensation. It was also previously rejected by a different court in Stuttgart. Back in March 2008, Porsche SE refuted reports and rumors it was planning to purchase VW and just seven months later announced it had control over 74.1 percent of VW’s common stock, a whisker away from the 75 percent needed to assume a takeover.