Porsche is facing a 1 billion USD lawsuit as an American fund claims it has lost this amount because of the taking over of Volkswagen. Elliott Associates, Glenview Capital Management and Perry Capital have sued Porsche for the 1 billion USD claiming the German carmaker has repeatedly lied about their intention to buy Volkswagen. their issues are with Porsche's former chief executive and chief financial officer.
The fund lost the money because they were selling borrowed shares and had plans to buy them back later at a lower price. As Porsche bought Volkswagen, VW shares' price went up and the fund’s plans went up in smoke.
Because the shares were borrowed, they had to buy
them back. This happened at a higher price than they sold them to and they lost the 1 billion USD.
Other reports say that various Volkswagen investors are in the same situation and that they're planing to join the lawsuit. This could take the total amount to as much as 10 billion USD.
At this time Porsche has rejected all those claims and stated they abided all the laws when completing the VW deal.
[Source: Autocar]
