It is not a good time to break out the bubbly and caviar just yet. There appears to be rough patch of road ahead for the German luxury automaker, according to a report from Reuters.
While Porsche has won a dismissal on Friday of a lawsuit filed by 26 hedge funds, the dismissal is based on a technicality rather than substance. A five-justice panel ruled that the state of New York is the wrong venue to file this suit.
The hedge funds have 30 days to decide whether to pursue the case in New York’s highest state court. It also has been reported that a $2 billion lawsuit filed by other hedge funds is pending.
"The decision is made with regard to the jurisdiction and not on a claim itself," DZ Bank analyst Michael Punzet said, adding other lawsuits seeking damages were ongoing.