The holding company has been facing numerous long-running suits brought on by disgruntled investors over the company’s botched attempt to become majority owner of Volkswagen AG.
Now, the investors have asked a court in Germany to link numerous lawsuits across the country into one massive action under the company’s class-action law. According to Andreas Tilp, an attorney that guides institutional investors that demand compensation worth at least 2 billion euros ($2.5 billion) in a pair of lawsuits, a request has been filed with the Braunschweig court last week. Tilp also added during an interview that if his request is positively resolved, than all other suits that are due in other courts across Germany would be postponed until his consolidated case is finalized.
Hedge funds and individual investors have filed numerous lawsuits in the courts of Braunschweig, Frankfurt, Hanover and Stuttgart against Porsche SE and they ask for the company to pay them a total of 5 billion euros. Now Tilp wants his case to be treated under a German law as a test trial – with the process very similar to US class actions. He also led several suits under Germany’s mass test law, introduced just a few years ago to allow 16,000 investors to sue Deutsche Telekom AG in a share sale issue.