Beyond The Revenge Of The Son Of The Hedge Funds: Porsche Sued For Stock Fraud

Edward Niedermeyer
by Edward Niedermeyer
beyond the revenge of the son of the hedge funds porsche sued for stock fraud

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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  • Robert Schwartz Robert Schwartz on Jan 25, 2010

    What is it that they say about payback again? It's a bitch, and then it has puppies.

  • CyCarConsulting CyCarConsulting on Jan 26, 2010

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

  • ChuckR ChuckR on Jan 26, 2010

    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.

    • See 1 previous
    • ChuckR ChuckR on Jan 26, 2010

      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?

  • MikeAR MikeAR on Jan 26, 2010

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