The New York State Court of Appeals has dismissed a hedge fund lawsuit that accused Porsche of causing more than $1 billion (€756 million) of losses by concealing their planned takeover of Volkswagen.
The five judge panel voted unanimously that the state of New York was the wrong place to bring the lawsuit. Porsche lawyer Robert Giuffra said the decision was an "important victory," but the 26 hedge funds could file another lawsuit in a different jurisdiction to try to recoup their losses.
As we have previously reported, the hedge funds allege that Porsche was responsible for their huge losses as a result of their failed takeover bid for Volkswagen. The hedge funds had expected Volkswagen shares to decline, but when Porsche officially announced plans to takeover the company - after months of denials - Volkswagen's stock price soared causing massive losses for the hedge funds.