Porsche Automobil Holding SE could be sued two billion euros ($2.5 billion) by investors over damages allegedly suffered during Porsche's failed attempt at taking over Volkswagen in 2008.
The group of investors, identified in a Reuters report as Elliott Associates, L.P., Elliott International, L.P., The Liverpool Limited Partnership, Perry Partners L.P., Perry Partners International, Inc., DE Shaw Valence International Inc., and York Capital Management Europe (UK) Advisors, LLP. filed the lawsuit in the Stuttgart district court.
Spokesperson for Porsche SE Frank Gaube said the company needs to receive the suit before it can examine it closely. He also said in a recent Automotive News report that "the accusations are not justified", saying that the company will reject them.
In 2008, Porsche Holding SE planned a complete takeover of Volkswagen Group, but due to German laws and the fact that Porsche had to borrow money from Volkswagen to make a complete takeover, the ownership takeover couldn't be made.
This resulted in investors losing billions. These investors allege that Porsche built up anticipation of a takeover on purpose for the sake of share price and market manipulation. According to the lawsuit statement,
"Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW's freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit."
Porsche SE currently owns 50.7 per cent of Volkswagen Group.