Skadden Achieves Dismissal of Securities Actions Against Former CEO of Porsche

Jay B. Kasner

Skadden represented Dr. Wendelin Wiedeking, former chief executive of Porsche Automobil Holding SE, in the dismissal of billions of dollars of claims brought against Porsche and two of its former officers and directors by several dozen hedge funds alleging misrepresentations and market manipulation in connection with Porsche's attempted takeover of Volkswagen AG. On Dec. 30, 2010, Judge Harold Baer in the U.S. District Court for the Southern District of New York held that the U.S. Supreme Court's decision in Morrison v. National Australia Bank precluded Section 10(b) claims brought on the basis of securities-based swap agreements whose referenced securities traded on a foreign exchange, because such agreements were economically and functionally equivalent to the purchase and sale of securities on a foreign exchange.