American hedge fund managers are suing Porsche for more than $1 billion
27 January 2010

American hedge fund managers are suing Porsche for more than $1 billion (£620 million).

Four fund managers - Elliott Associates, Glenhill Capital Management, Glenview Capital Management and Perry Capital - are accusing Porsche, its former chief executive and its former chief financial officer of repeatedly lying about their intention to take over Volkswagen.

The fund managers claim they lost more than $1 billion because they were shorting VW stock - a process of selling borrowed shares in the hope of buying them back more cheaply at a later date and pocketing the difference - in October 2008 when Porsche surprised the stock market by revealing a 75 per cent stake in VW.

Porsche's announcement sent VW's shares rocketing, and as the short sellers scrambled to buy back stock, that drove prices even higher.

The American funds lost more than $1 billion when forced to buy VW shares at the inflated price in order to meet their obligations to return the shares they had borrowed. Porsche profited from the squeeze by selling some of its secretly acquired stock.

Phil Beck, the funds’ attorney, said: “Porsche should be held accountable in a court of law. We’ll do whatever it takes to make sure that the rule of law is upheld."

Reports also suggest that other VW investors may join the lawsuit, boosting claims to as much as $10 billion.

A Porsche spokesman said the company rejected the claim, adding that Porsche had “always abided by current capital markets law”.

Porsche has already investigated the behaviour of Wendelin Wiedeking, its former chief executive, and Holger Harter, its former vice-president of finance, and found no wrong-doing.

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27 January 2010

This is laughable. So, they are effectively trying to be compensated for money they lost while gambling based on misinformation.


27 January 2010

Not Really - Porsche have been backdealing and fiddling - I'd be P****D if it was me they'd swindled.

Porsche had corrupt managment way out of their depth - how was porsche ever gonna buy Volkswagen - the bottom fell out when they didnt have the money to get the rest.

Dodgey companies like this that caused the mess in the first place. I hope they get what they deserve.

27 January 2010


I'm laughing my butt off.

These hedge fund managers deserve no sympathy.

27 January 2010

Got to make up for that Bonus Tax after all. Hedge Fund Managers garages are probably full of Porsches. What we need is a return of the old "dangerous" 911 Turbo of the 1980's. That'll thin out their ranks a bit.


27 January 2010

So four hedge fund managers are suing Porsche because they lost more than $1bn - I'm sure there will be an outpouring of public sympathy towards them..... you'd think these guys would know that hedge funds are a tad risky....

27 January 2010

Ooooh my heart bleeds for these hedge fund managers AKA greedy "bar stewards" . Bar stewards ? ....think about it.

27 January 2010

[quote Autocar]The fund managers claim they lost more than $1 billion because they were shorting VW stock[/quote]

I thought the American financial authorities had outlawed (naked)shorting of stocks? These hedge funders may be rich but they're not the sharpest tools in the box.

Even if shorting was lawful back in 2008 a judge in present circumstances - with banksters lower than Satan in public esteem - would find it impossible to find in their favour, unless he really wants to find out how rope feels tightening around his neck.

27 January 2010

These guys should face reality, they took a gamble and lost ! I'm sure they wouldn't expect to be sued by the people who lost money when dealing with them, so why should they expect to be compensated when they end up on the losing side for a change. I would hope that any judge would just throw this case out as being of no merit. Seems to me that Porsche were playing the same game as they were in speculating on the market but simply did a better job of it.

Enjoying a Fabia VRs - affordable performance

27 January 2010

Never really been a big Porsche fan, but i had to laugh when the story first broke that they had (intentionally or not) played the hedge fund managers for billions of dollars.

No sympathy for the hedge fund managers at all - these are vultures who hope to profit from struggling companies and don't like it when their gambles backfire. Them trying to sue Porsche is like a gambling addict trying to sue a casino after he has lost his life savings.

Ironically, Porsche's attempted VW buyout was a gamble which backfired as well, meaning that the ultimate winner was Volkswagen, who cheerfully bought out Porsche instead. Sounds like karma finally caught up with Porsche for foisting the Cayenne and Panamera on us all, and the hedge funds got their comeuppance for (indirectly) capitalising on people's misery. Three cheers all round.

Mind you, for future reference Porsche, swindling some of your best customers is not usually considered to be a brilliant marketing concept...

27 January 2010

That is most stupid thing i have ever heard of. They just had to do the reseach before doing what they did and they would have know it was going to happen. I rember at the time that there was signs of this happing it just was not as clearn as it possbile could of been. First of all Porsche had up it steak in VW Group few time that year that say to me that they where thing of buying them out. They are bunch of cry babes mooing of splilt milk.

This teaching them to do there home work.


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