Viking Global sues Porsche for stock fraud scheme in VW takeover attempt

Viking Global Investors filed a suit last Friday in the federal court in Manhattan against Porsche SE for its attempted takeover of Volkswagen AG. The New York-based fund claims that what Porsche did was an illegal stock fraud scheme that cost the hedge fund at least $390 million.

This complaint follows a similar suit by US-based short sellers of VW stock who assert that Porsche surreptitiously cornered the market in VW shares in 2008 and later resulted to over $1 billion in losses. According to the suit, Viking took short positions on VW shares armed with the belief that the stock was overpriced.
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Lexus - 10/26/2010 4:01:19 PM

+1 Boost

From my understanding or maybe I am because English is not my first language. It funny how many of this big stock investor cry and whine when they lose money. You don't hear them bitching or crying when they make huge amount of money in stock do we.

It a stock market, there is huge risk of making and losing money.

ThierryHenry14 - 10/27/2010 2:20:50 PM

0 Boost

I agree with you, and moreover, hedgefunds are unregulated "players" if you will, and so they cannot cry about these practices as most of the hedgefunds does what Porsche did themselves. It is when they are burned by their own tactics, they cry foul.

No sympathy for Viking...

Steve - 10/26/2010 8:22:06 PM

+2 Boost

Translated into laymen's terms: Viking Global Investors thought they knew Porsche really well, and they bet big that they were right. But Porsche did something VGI didn't expect. So rather than admit VGI was wrong in their assumptions and understanding of Porsche, they sue Porsche on trumped-up charges.

ThierryHenry14 - 10/27/2010 2:23:48 PM

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VGI: I can speculate about prices to manipulate the prices because I am unregulated and SEC cannot come after me because I'm not registered. I want nothing to do with the SEC because they regulate market practices.

PORSCHE: OK, let me do the same thing...

VGI: Oh... We lost 390M because we made a wrong bet. SEC, please help us because Porsche is doing illegal market practices...

internationalmanofmystery - 10/27/2010 3:09:46 PM

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Waaaaah, waaaaah, poor wanna-be billion dollar bottom-feeding babies now seek the warm blanket and shelter of jurisprudence. Sob, sob. Have my monogrammed hanky. (Blow, blow...no, you can keep it!) Go see your overpriced shrink now. You bet they would lose because that is your nature but nature had a surprise for you. Your turn! You lose! You came up, ahem, SHORT! Next step.......DEAL with it! Case dismissed!!!