Porsche Wins Dismissal of Lawsuits

Porsche has won a dismissal of two lawsuits that it cost hedge funds over $2 billion in losses due to its acquisition of Volkswagen shares back in 2008, writes Bloomberg. The hedge funds claimed that Porsche misled investors by denying throughout most of 2008 that it was never going to acquire Volkswagen. Porsche said on Oct. 26, 2008, that owned most of Volkswagen's common stock, which then sent shares of Wolkswagen surging, as short sellers covered. U.S. District Judge Harold Baer yesterday dismissed the complaints filed by hedge funds Elliott Associates and Black Diamond Offshore, who represented a total of 39 U.S. and foreign hedge funds. Baer said using a recent U.S. Supreme Court ruling, that the case could not be considered fraud as it did not apply to a domestic security.