Challenging Porsche’s “short-squeeze” deception in landmark German model proceeding
Plaintiff(s):
Institutional investors from the U.S. and Europe
Case type / claims:
Claims in Germany against Porsche and Volkswagen arising out of the “short squeeze” orchestrated by Porsche with respect to Volkswagen shares in 2008. The claims arise out of losses suffered by investors who engaged in short sales and other transactions respecting Volkswagen stock and who were injured by Porsche’s allegedly false and misleading statements concerning its lack of intention to increase its holdings of Volkswagen stock. A large number of institutional investors, from both the U.S. and Europe, have joined the case, asserting damages in excess of $1 billion.
Defendant(s):
Porsche and Volkswagen
Jurisdiction:
Regional Court of Hanover, Germany (KapMuG model proceeding)
Year:
Active
Outcome:
- G&E initially filed claims in the U.S. under the federal securities laws, but after the Supreme Court’s decision in Morrison v. National Australia Bank, G&E looked for an alternative forum in which the investors might be able to recover their losses
- Court granted application to convert the case into a German “model proceeding”
