Porsche Faces $1 Billion Suit

Several U.S. investments funds, including Elliott Associates, Glenhill Capital and Perry Partners, have filed a lawsuit against the German car manufacturer Porsche, as reported by The Wall Street Journal yesterday (27.01.2010).

The funds are seeking to recover more than $1 billion in losses related to Porsche’s takeover bid for the Wolfsburg-based Volkswagen company.

The suit includes the company’s former CEO, Wendelin Wiedeking and former CFO, Holger Härter. Porsche allegedly manipulated the price of VW stock as it secretly accumulated control over almost all of the company’s freely traded shares

The suit claims that the company released billions of euros worth of shares for its own profit, and misled investors about its position and intentions with respect to Volkswagen, the funds said.

U.S law firm, Bartlit Beck Herman Palenchar & Scott, is representing the funds.