US funds file a new lawsuit against Porsche

16th March 2011, Comments 0 comments

US investment funds have filed another complaint against German luxury automaker Porsche, which said Wednesday their action was "unfounded."

Plaintiffs in the lawsuit filed in the New York State Supreme Court claim that actions by Porsche caused them to lose more than one billion euros ($1.39 billion).

A group of 39 investment funds filed a suit against Porsche last year which said the German carmaker lied in 2008 about its plans to take over Volkswagen, the biggest European carmaker, and thus of manipulating the stock market.

Porsche's attempt to control the much bigger VW ultimately failed, and Porsche is now in the process of becoming VW's 10th brand, but investors who expected VW shares to fall suffered heavy losses in the process.

In late December, the US District Court for the Southern District of New York granted a motion by Porsche to throw out the first lawsuit, which claimed more than two billion euros in damages and interest.

Some of the plaintiffs in that case are now seeking a hearing by the state court.

"Porsche considers this complaint irreceivable and unfounded," a spokesman told AFP.

A source close to the matter said the new action could further delay VW's takeover of Porsche owing to uncertainty over the potential cost of a legal settlement.

© 2011 AFP

0 Comments To This Article