Investors Sue Porsche for €1.8 Billion

Seven hedge funds have sued Wolfgang Porsche, chairman of Porsche Automobil Holding SE, and Ferdinand Piech, chairman of Volkswagen AG, over the holding company's failed attempt to buy VW in 2008. Both men are members of Porsche SE's supervisory board.

Porsche SE claims the €1.8 billion lawsuit, which was filed in a Frankfurt regional court, is without merit. Several other hedge funds have failed to prevail in lawsuits filed over the same issue.

Porsche SE amassed 74% of VW between 2005 and 2008, one percentage point less than required to complete the takeover. Hedge funds, which bet on stock prices dropping, suffered heavy losses when news of the takeover became public and VW's share price skyrocketed.

The takeover ultimately collapsed under a debt load of more than €10 billion. Porsche SE, which still owns nearly 51% of VW, completed the sale of its Porsche sports car company to VW in 2012.