The Porsche hedge funds court case has experienced its first win. Case number 28 O 183/13, brought in the Regional Court of Stuttgart against Porsche Automobil Holding SE, has been dismissed by the court. The news is not a huge surprise, after presiding judge Carola Wittig commented last month on the high risk of the plaintiffs losing their case.
The case is one of a bundle of actions against PSE totalling €5 billion, brought by a group of twenty three hedge funds following Stuttgart’s failed attempt to take over Volkswagen. The plaintiffs’ argument seems to revolve around the idea that companies should disclose their takeover plans in advance, but I may have this backwards. I thought the stock market was all about risk, which is the opposite of knowing things early.
The statement says “Porsche SE welcomes the Regional Court of Stuttgart’s decision and considers its legal opinion to have been confirmed.” The company is still not out of the woods however, as the related cases have hearings through April and May of this year.
The cynical among you may remark that, whatever happens in court, pension and investment customers will take the pain, while bonuses fly on Wall Street and beyond. I couldn’t possibly comment.