By Friedrich Geiger
FRANKFURT--Germany's Porsche Automobil Holding SE (PAH3.XE) said
Sunday seven hedge funds have filed a suit against Chairman
Wolfgang Porsche and an additional member of its supervisory board,
claiming damages in connection with the acquisition of Volkswagen
AG shares between 2005 and 2008.
The hedge funds are demanding 1.8 billion euros ($2.4 billion)
in damages from Mr. Porsche and Ferdinand Piech in their suit filed
before the regional court of Frankfurt. The plaintiffs had already
filed a claim for damages in the same amount against Porsche SE.
The funds are managed by D.E. Shaw & Co., Elliott Management
Corp., Perry Capital Management and York Capital Management.
Several investors have filed suits against Porsche SE in
connection to the company's attempt to take over German car maker
Volkswagen. They allege Porsche SE of having provided inaccurate
market information. The takeover attempt failed and Porsche SE sold
its sports-car making business to Volkswagen and became a major
shareholder of the company.
The plaintiffs argue in the new suit that Mr. Porsche and Mr.
Piech participated in reaching all the decisions that Porsche SE
made in connection with the Volkswagen stake increase, the holding
said. The new suit is also without merit and solely functions as a
trial tactic, Porsche SE said.
The court and the four fund management firms didn't immediately
respond to requests for comment.
Write to Friedrich Geiger at friedrich.geiger@wsj.com