Porsche Automobil Holding SE’s supervisory board members and cousins Ferdinand Piech and Wolfgang Porsche are being sued by seven hedge funds that are seeking 1.8 billion euros ($2.4 billion) in compensation over damages they claim to have suffered as a result of the Porsche holding group’s failed 2008 attempt to purchase the Volkswagen Group.
According to Bloomberg, the civil action was brought in Frankfurt Regional Court, Porsche SE said in a statement released over the weekend. Piech is chairman of the VW Group and Wolfgang Porsche is the chairman of Porsche SE’s supervisory board. The company said it will contest the suit, saying that it is without merit.
The is the latest legal action to face Porsche since disclosing in October 2008 that it had acquired 74.1 percent of Volkswagen, partly through options, and was looking to purchase the entire company. That announcement caused VW stock to rise in price as short sellers scooped up shares to repay borrowed stock bought as a bet that VW would fall.
The takeover attempt failed and Volkswagen now controls the Porsche brand. So far Porsche SE has been successful in defending against accusations that it manipulated Volkswagen shares. The company successfully move most related U.S. litigation Germany where it will get a more sympathetic hearing. In July 2013, the company also won a ruling in an effort to block a new legal claim in the U.K.
While Porsche statement didn’t name the hedge fund plaintiffs, the German magazine Spiegel has reported that Elliott Associates LP was one of the firms that filed the lawsuit.