Porsche Sued Over VW Acquisition

Back in 2008, Porsche made a failed acquisition bid for Volkswagen. Although two lawsuits have recently been dismissed, a new lawsuit has been filed by the family of industrialist Adolf Merckle. Merckle committed suicide after several of his investments, including a short position in VW, turned sour. Merckle's family is arguing that Porsche camouflaged its potential acquisition of VW and secretly purchased VW shares. When the potential acquisition was announced, VW shares shot up, forcing Merckle and other short sellers to scramble to cover the short positions.