Oct. 22 (Bloomberg) -- Porsche SE was sued by Viking Global Investors over claims the automaker’s attempted takeover of Volkswagen AG was an illegal stock fraud scheme that cost the hedge fund at least $390 million.

The complaint against Porsche, filed today in federal court in Manhattan, follows a similar lawsuit by U.S.-based short sellers of VW stock who claim the sports-car maker secretly cornered the market in VW shares in 2008 and later cost them more than $1 billion in losses.

Viking took short positions on VW shares believing the stock was overpriced, and relying on Porsche’s public assurances in 2008 that it didn’t own or intend to acquire a controlling interest in VW, according to the suit.

“Unbeknownst to Viking or the market, at least as early as March 2008, Porsche was taking steps to corner the market in VW shares as part of an effort to secretly take control of VW,” the New York-based fund claims in the suit. “Through careful market manipulation and false statements, Porsche convinced investors to believe that the VW shares were overvalued, inducing them to enter into short sales of VW shares.”

Due to Porsche’s “stranglehold” on the VW shares, short sellers lost about $38.1 billion in less than one week and Viking lost at least $390 million in two days, according to the complaint.

Full article -> Porsche Sued Over ‘Stranglehold’ on Volkswagen Shares - BusinessWeek

 

I love it when short sellers get creamed.

 

$38.1 billion? that's awesome lol

 

awwww. am whining cause i suck at speculation