Hedge fund managers Elliott Management, Perry Capital, Glenhill Capital Management, and Glenview Capital Management have sued luxury car company Porsche and its former CEO and CFO for over $1 billion. In the suit, the four hedge fund managers accuse the defendants of lying about Porsche’s intention to take over German carmaker Volkswagen. According to the Times Online, the four hedge fund managers, who were shorting Volkswagen stock, allegedly lost over $1 billion when the stock’s prices skyrocketed after Porsche announced its 75% stake in the company.
Additional investors who lost money from Porsche’s surprise move are anticipated to join the lawsuit, filed on January 25, which could elevate the claim to up to $10 billion. Porsche allegedly began to increase its stake in Volkswagen in 2005 while denying its intention to take acquire the company. Misled by Porsche’s denials, the hedge funds were obliged to buy Volkswagen shares at inflated prices.
Paul Singer’s Elliott Management, Richard Perry and Paul Leff’s Perry Capital, Glenn J. Krevlin’s Glenhill Capital Management, and Larry Robbins’ Glenview Capital Management managed $706mm, $1,407mm, $1,113mm and $3,844mm in US equity assets as of 9/30/09, respectively. |
