Four hedge funds - Elliott, Glenhill, Glenview and Perry Capital ?? filed a lawsuit at the New York Southern District Court on Monday, in an attempt to recoup large losses suffered by them after a VW share price surge triggered by Porsche??s takeover attempt of Europe??s largest carmaker.
The funds are accusing Porsche and its former chief executive and chief financial officers, Wendelin Wiedeking and Holger Härter, of market manipulation and of disguising their aim to buy more than 75 per cent of VW??s shares in order to take full control over VW.
??The complaint alleges that the defendants repeatedly misled investors and lied about Porsche??s positions and intentions with respect to VW,? the funds said in a press release.
The lawsuit is expected to be only the first step in a series of damage claims by hedge funds, banks?? proprietary trading desks and large family offices.
Future damage claims in Germany and the US by more than 50 claimants could exceed $10bn.
