A US federal judge has dismissed a $2 billon lawsuit filed by a group of hedge-fund managers alleging market manipulation in Porsche’s 2008 Volkswagen AG takeover bid.
U.S. District Judge Harold Baer dismissed the complaints filed by hedge funds Elliott Associates LP and Black Diamond Offshore and representing a total of 39 U.S. and foreign-based funds. In January, a suit was filed in federal court seeking damages of over $2 billion against Porsche Automobil Holding SE, its former chief executive, Wendelin Wiedeking, and its former chief financial officer, Holger Haerter. The suits accused Porsche of secretly cornering the market in Volkswagen shares.
Judge Harold Baer Jr. ruled that U.S. securities laws didn’t apply in the case because the alleged market manipulation occurred outside the United States and isn’t subject to the U.S. Securities Exchange Act.
The Plaintiffs have 30 days to file an appeal to the U.S. Court of Appeals for the Second Circuit.
Source: Bloomberg
