Hedge fund lawsuit against Porsche dismissal appealed

In late December, a US District Judge in New York dismissed the multi-billion dollar lawsuit filed by Black Diamond Offshore and Elliott Associates LP against Porsche for the investing impact felt by their failed attempt to buy up a massive chunk of Volkswagen and not surprisingly, that dismissal has been appealed by Black Diamond and Elliot on the behalf of their 39 plaintiffs.

US District Judge Harold Baer dismissed the multi-billion dollar lawsuit against Porsche on December 30th and the plaintiffs had 30 days to appeal this decision and on January 29th, they officially filed their appeal of the dismissal. Needless to say, Porsche AG plans to fight the appeal with the hopes of moving past these accusations of stock marketing tomfoolery.

The plaintiffs are suing Porsche for the impact of their announcement in October 2008 that they controlled a majority of Volkswagen’s common stock. That announcement caused a massive disturbance in the stock market but the alleged sale fell through – costing hedge fund investors a reported $2 billion dollars. Ironically, shortly after Porsche’s alleged attempt at a stock-based takeover of Volkswagen Auto Group, VW purchased and absorbed Porsche so the two automakers ended up merging but the damage was done in the financial world.

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