A group of four American hedge fund managers are suing Porsche for more than $1 billion, accusing the company, its former CEO and former CFO of repeatedly lying about their intention to take over Volkswagen.
The group claims they lost more than $1 billion because they were shorting Volkswagen stock (a process of selling borrowed shares to buy them back cheaper at a later date for a larger difference). Porsche’s announcement send Volkswagen shares skyrocketing as the short sellers scrambled to buy back stock.
“Porsche should be held accountable in a court of law,” said Phil Beck, the funds’ attorney. “We”ll do whatever it takes to make sure that the rule of law is upheld.”
– By: Stephen Calogera