Porsche Says Some Plaintiffs Withdraw Appeal

Porsche Automobile Holding SE (PAH3.XE) said late Wednesday 12 of 32 plaintiffs withdrew their appeal of a decision by the U.S. District Court in New York.

The withdrawal of the appeal awaits court acceptance, and the appeal by the remaining 20 plaintiffs remains unaffected by the withdrawal, Porsche said.

Altogether, 46 hedge funds filed action in the U.S. against Porsche SE and some former members of its management board, seeking more than $2.5 billion in total damages, related to Porsche's acquisition of Volkswagen AG (VOW.XE) shares and disclosure. In December 2010, the U.S. District Court for the Southern District of New York dismissed the actions in the first instance, resulting in an appeal by 32 plaintiffs.

In 2005, Porsche bought Volkswagen shares and attempted to take over the company via complex share options three years later. The move sparked high volatility in Volkswagen shares and losses for investors. The attempt failed, and Porsche was later sold to Volkswagen.

The decision by 12 plaintiffs to withdraw their appeal won't affect separate claims before the regional court of Braunschweig filed at the end of 2011. In this action, the plaintiffs alleged damage of around 1.8 billion euro ($2.34 billion ), Porsche said.

"Porsche SE considers the claims alleged in the action to be without merit," the company said in the release.

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