After months and months of legal proceedings, a judge finally ruled in favor of Porsche and dismissed a lawsuit filed by fellow German automaker Volkswagen. The lawsuit claimed that Porsche caused more than $1 billion in losses when it allegedly cornered the market both automakers compete in. The decision was arrived at after a panel of five New York State justices unanimously voted in Porsche’s favor. Porsche won the lawsuit after all five justices decided that New York wasn’t the proper state to file the lawsuit in.
The origin of the lawsuit stems from when Porsche non-schlantly bought almost every one of Volkswagen’s freely traded ordinary shares back in October of 2008. Despite never coming out and saying it, many believed that Porsche was attempting to take over Volkswagen by acquiring a majority of its freely traded shares. Volkswagen believes that it suffered more than $1 billion in losses after Porsche bought the shares. After Porsche revealed its holdings, shares in Volkswagen skyrocketed and it became the biggest automaker strictly by market value for a brief time. At the same time, hedge funds that bet on a decline in stock prices took a nose dive.
In an email to Automotive News, Robert Giuffra, a lawyer for Porsche, called the court’s decision to rule in favor the automaker he represents an “important victory.” On the other side, James Heaton, a lawyer who represented the hedge funds, did not comment on the decision. The decision comes just a week after prosecutors in Stuttgart filed charges against former Porsche CEO Wendelin Wiedeking and former Chief Financial Officer Holger Haerter concerning their involvement in the purchasing of Volkswagen’s shares. Lawyers representing each former Porsche employee have claimed they’ve done nothing wrong. This situation is a fluid one and as more information becomes available, we’ll pass it your way so stay tuned.
Source: Automotive News