NEW YORK -- Porsche SE was sued by hedge funds including Greenlight Capital Inc., Tiger Management LLC over $1 billion in short-selling losses, in a new lawsuit filed against the German carmaker.
The funds accused Porsche of fraud, saying it hid its plan to corner the market in Volkswagen AG shares, according to a complaint filed in New York State Supreme Court.
Other plaintiffs in the case include Glenhill Capital LP, Glenview Capital Partners LP, Royal Capital Value Fund LP and various affiliates.
The funds had shorted, or bet against, VW stock and suffered losses when Porsche revealed its holdings. "Porsche lured the plaintiffs into a trap, making plaintiffs believe VW shares were overvalued while hiding from plaintiffs the risk of a massive short squeeze that would send the price skyrocketing several hundred percent," they said in court papers.
The lawsuit follows the December dismissal by a Manhattan federal judge of a similar $2 billion lawsuit filed by hedge funds, including some that sued on Tuesday.
Albrecht Bamler, a spokesman for Stuttgart, Germany-based Porsche, didn't immediately return an e-mail seeking comment after normal business hours.
Bloomberg and Reuters contributed to this report