By on January 25, 2010

A suit filed yesterday by Elliott Associates LP, Glenhill Capital LP, Glenview Capital Partners LP and other financial firms who were NSFWd by Porsche‘s attempted takeover of VW, alleges Porsche “manipulated the price of VW stock as it secretly accumulated control over almost all of VW’s freely traded shares” [suit available for online viewing here]. Porsche has been under investigation in Germany for stock manipulation since October of 2008, and the legal wardrums have been sounding ever since. The plaintiffs are seeking over a billion dollars in damages… and yes, Bertel, one of the plaintiff hedge funds (Glenview Capital) is owned by Goldman Sachs. What is it that they say about payback again?

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6 Comments on “Beyond The Revenge Of The Son Of The Hedge Funds: Porsche Sued For Stock Fraud...”


  • avatar
    Robert Schwartz

    What is it that they say about payback again?

    It’s a bitch, and then it has puppies.

  • avatar
    CyCarConsulting

    I love Goldman taking it in the tailpipe. Watch them scream like little bitches, when it’s been done to them.

  • avatar
    chuckR

    Filed in the Southern District Manhattan. New York. USA. Not Germany.

    If the Germans eventually clear Porsche, where is the standing for suing a German company acquiring stock and options of another German company in Germany? Big if, but might the Germans be more inclined to do so by this suit?

    I do like that German word, schadenfreude. Buncha whiny little hedge fund bitches. The market would take it in the shorts for a while, but if they were regulated out of business, I wouldn’t mourn them.

    • 0 avatar
      Ernie

      Where were the shares in question listed? Doesn’t that determine jurisdiction in addition to where the companies are based?

      Sorta like when you go overseas? If you do enough bad stuff, it’ll get you in trouble at home?

    • 0 avatar
      chuckR

      Ernie

      I’d like to know the answers to the questions. IIRC, Porsche didn’t go overseas; they played this out on home turf and used some tame German banks to hide behind. That may be what the German govt is investigating currently. Unless ADRs or something are the camels nose through the tent flap that gets standing. Wonder how long this will drag on?

  • avatar
    MikeAR

    They complain when it’s done to them, when they manipulate it’s just the marketplace at work.


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