Porsche Sued for $1.8 Billion by Hedge Funds

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Porsche Sued for $1.8 Billion by Hedge Funds

By - May 13, 2013

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Remember a few years ago when Porsche was trying to take over Volkswagen and couldn’t quite manage it? Yeah, well, it seems that failed takeover has left a group of investors with a lingering hurt in their collective wallets. Hedge funds Viking, Glenhill and Greenlight are among those who are suing Porsche over their use of options during their failed takeover in 2008. These three are asking for a whopping $1.8 billion.

The hedge funds claim that Porsche misled investors by saying they didn’t intend to buy Volkswagen. It actually ended up going the other way around in the long run.

This latest suit is just one more Porsche will have to deal with on top of the several others they’re already contending with. Over 25 hedge funds are seeking $5.2 billion dollars over that debacle. On top of that, former Porsche CEO Wendelin Wiedeking and CFO Holger Haerter were charged with market manipulation last December. Yikes.

Porsche stock took a dip today at the news, but it’s risk remains mostly unaffected (they expected this much I guess). Get it while it’s hot.

via [BusinessWeek]

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