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Porsche boosted by US court ruling

Porsche boosted by US court ruling
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Shares in German car maker Porsche jumped on Monday after a judge in the US dismissed a lawsuit from a group of hedge funds seeking 1.5 billion euros in damages.

The investors had claimed that Porsche’s share buying tactics when it tried to take over VW in 2008 amounted to securities fraud and as a result they were victimised.

Porsche covertly bought a stake of Volkswagen ordinary shares using swap instruments as part of a so-called “sneak attack” method plan to take over Europe’s largest car maker.

The judge’s decision has removed a key obstacle to a merger between Porsche and Volkswagen.

The lawsuit had delayed attempts by Volkswagen to fold Porsche into its operations next year and the ruling opens the door for a planned rights issue by Porsche.

The judge dismissed most of the plaintiffs’ claims with prejudice, meaning they cannot be brought again.

The ruling came after the German stock market closed on Thursday for the new year holiday. VW’s shares also rose on Monday.