FRANKFURT, Germany and NEW YORK, Dec. 30, 2011 /PRNewswire/ -- A group of investment funds filed a lawsuit against Porsche Automobil Holding SE ("Porsche SE"), seeking to recover approx. 2 bn Euro in losses suffered as Porsche SE attempted a takeover of Volkswagen AG ("VW") in 2008.
The complaint, filed in the district court in Stuttgart, alleges how Porsche SE gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW's freely traded shares, then triggered a massive short squeeze, and finally released billions of Euros worth of shares into the short squeeze for its own profit.
One of the focal points of the complaint is Porsche's press release that triggered the short squeeze. On October 26, 2008, Porsche SE suddenly revealed the extent of its huge derivative position and claimed control over 74.1 per cent of VW common stock. For the first time, after strong denials in the weeks and months before, Porsche SE confirmed that it wanted to cross 75 per cent and implement a domination agreement which would give it full control over VW and its liquidity. This resulted in what the New York Times called "a short squeeze of historic proportions."
Plaintiffs also filed an arbitration application regarding VW, two members of the VW supervisory board and one member of the management board of VW.
The funds are represented in Germany by BROICH Partnerschaft von Rechtsanwaelten.
Charles Barker Corporate Communications
+49 (0)172 622 7007
SOURCE BROICH Partnerschaft von Rechtsanwaelten