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No Fast Cash from Porsche, Appeals Court Rules

Hedge funds lose again when it comes to the German maker.

by on Aug.18, 2014

Hedge funds lost another round in court over a suit stemming from Porsche's attempted takeover of Volkswagen, which saw Wolfgang Porsche, left, and Ferdinand Piech, chairman of VW, on the same team, but with VW in charge.

In what many might consider karma, dozens of hedge funds looking for a payoff from the controversy surrounding Porsche failed bid for Volkswagen AG suffered were shot down in court: again.

The U.S. Court of Appeals for the 2nd Circuit in New York City upheld the dismissal of a lawsuit by a group of more than two dozen American and British hedge funds that claimed to suffer big losses in the fall of 2008 when Porsche executives manipulated the company’s holdings of Volkswagen stock in what turned out to an abortive bid to take over VW.

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Porsche had started buying shares in 2006 but ultimately the plan collapsed during the financial crisis that followed the collapse of Lehman Brothers. (more…)