Porsche Says US Law Doesn't Apply To Investor Claims
September 01 2010 - 5:39AM
Dow Jones News
German sports-car maker Porsche Automobil Holding SE (PAH3.XE)
has asked a New York court to dismiss claims filed by a total of 39
hedge funds alleging market manipulation and securities fraud,
because the U.S. Securities Exchange Act doesn't apply to the
plaintiffs' claims, Porsche said in memorandum released
Wednesday.
"Plaintiffs chose to speculate on German share prices and all
the misstatements and market manipulation they allege occurred
outside the United States, but they attempt to invoke U.S. law by
asserting claims under Section 10(b) of the Securities Exchange Act
of 1934...Their attempt fails because Section 10(b) does not apply
to their patently foreign claims," the Stuttgart, Germany-based
carmaker said in a memorandum submitted to the court.
Porsche said "Germany is the appropriate forum" for any court
action since the case, which is related to Porsche's stake-building
at Volkswagen AG (VOW.XE), involves German law, securities,
markets, and conduct.
"Adjudicating plaintiffs' claims in the United States would run
the risk of inconsistent judgments and encourage forum shopping by
potential plaintiffs," Porsche said.
The company further said that the plaintiffs' claims don't
sufficiently allege that Porsche made actionable misstatements, and
their case fails to allege a market manipulation claim.
-By Harriet Torry, Dow Jones Newswires: +49 69 29725 511:
harriet.torry@dowjones.com
Porsche Automobile (PK) (USOTC:POAHY)
Historical Stock Chart
From Jun 2024 to Jul 2024
Porsche Automobile (PK) (USOTC:POAHY)
Historical Stock Chart
From Jul 2023 to Jul 2024