Judge Throws Out Hedgies Case, Clears Way For Porsche Anschluss
Phew.
Did you hear that? That was a sigh of relief, emanating from the few souls that are still holding the fort at Volkswagen in Wolfsburg and Porsche in Zuffenhausen. The sudden release of long held breath was caused by U.S. District Judge Harold Baer, who dismissed a lawsuit by 10 hedge funds who accused Porsche of securities fraud during the Wiedeking/Härter hijinx. The hedgies claimed more than $2 billion in damages, which gave Volkswagen pause in fully absorbing Porsche. Now, they can floor it.
What tripped the claimants?
While the judge was at it, he also dismissed claims against former Porsche CEO Wendelin Wiedeking and former CFO Holger Härter, Porsche said.
The hedge funds could appeal, but chances are nil to zip.
Said an exasperated Jim Sabella, a lawyer retained by the Black Diamond hedge fund group: “The real problem is Morrison, which is a disaster for investors.”
It’s a disaster for lawyers who need education in jurisdiction.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Is Wendy actually doing that
I would imagine that the partners at Bartlit Beck Herman Palenchar & Scott went ghostly pale when the Supreme Court handed down Morrison. I wonder what the statute of limitations for securities fraud is in Germany.