(Adds background on litigation in New York and Germany.)
Porsche Automobil Holding SE (PAH3.XE) said Thursday it and
plaintiffs in a case before the New York State Supreme Court have
entered into an agreement to terminate all proceedings before the
court.
As part of the agreement, the plaintiffs will waive any appeal
of the decision of the Appellate Division of the New York State
Supreme Court dismissing their complaints, while Porsche SE has
agreed not to raise any statue of limitations defense with respect
to claims filed by plaintiffs before a court in Germany within 90
days.
In late December 2012, a New York appeals court panel dismissed
a lawsuit by 26 hedge funds seeking more than $1.4 billion in
damages stemming from Porsche's failed attempt to take over
Volkswagen.
The judge ruled New York state wasn't the appropriate
jurisdiction for the case. Under the terms of the ruling, the funds
had about 30 days to decide whether to appeal.
The agreement with the hedge funds brings an end to Porsche's
exposure to legal claims in New York. But it still faces lawsuits
in Germany seeking a combined 4 billion euros ($5.4 billion) and an
appeals battle on a $2 billion hedge-fund lawsuit that was
originally dismissed in U.S federal court in 2010.
The 26 hedge funds argued that Porsche in 2008 led them to
believe it was seeking a 51% stake in Volkswagen. After announcing
that Porsche had snapped up nearly 75% of shares, VW's share price
tripled, causing massive losses for some traders.
Frankfurt Bureau, Dow Jones Newswires; 49-69-29725-500
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