Market Crawl – A US federal judge dismissed a lawsuit by 10 hedge fund groups condemning German automaker Porsche SE of cornering the market in shares of Volkswagen AG, resulting in more than $2 billion of damages.
US District Judge Harold Baer said that the funds, led by Elliott Associates and Black Diamond Offshore, possibly will not uphold securities fraud claims based on Porsche’s alleged “short squeeze.” He cited a June ruling by the US Supreme Court, in Morrison v. National Australia Bank Ltd that constricted the capability of plaintiffs to use US courts to pursue claims involving non-US conduct.
