Investors Hit Porsche (PK: POAHY) With $2.6B Lawsuit Over Failed VW Takeover

Tallahassee, FL 1/6/12 (StreetBeat) -- Though the start of a new year is traditionally a time to look to future, Porsche (Pinksheets: POAHY) instead will be forced to relive a painful incident from the past as a a group of investment funds are seeking $2.6 billion in damages over the automaker’s unsuccessful 2008 takeover attempt of Volkswagen .

“ Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW’s freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit,” read a statement from the investors.

“The accusations are not justified and we reject them,” said Porsche spokesman Frank Gaube.

Porsche has previously faced a number of lawsuits (all of which have failed) alleging that the automaker clandestinely acquired shares as part of effort to take control of VW while publicly denying a takeover attempt.

The investment funds, which were not identified in the statement, also filed an arbitration application regarding Volkswagen , two members of the VW supervisory board and one member of the management board of VW.

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