From our colleagues at DealBook:
A federal judge in Manhattan on Thursday dismissed a $2 billion lawsuit brought against Porsche by 10 hedge fund managers, stating that the New York court had no jurisdiction over lawsuits related to foreign securities — an outcome predicted in an October Deal Professor column.
The suits brought by hedge fund managers, including Elliot Associates and Black Diamond Offshore, accused the automaker of misleading investors about their stake in Volkswagen, which the managers were shorting.
The basis for the ruling comes after a Supreme Court decision this summer in Morrison v. National Bank of Australia Bank Ltd., which limited shareholders’ ability to sue foreign companies in the United States if stocks trade on overseas exchanges. That means the Porsche case could now move to Germany, where the car company is based.
Lawyers for Porsche said they were “delighted” by the decision.
Read more here.
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