Porsche 2011 Annual Report Download - page 203

[22] Contingent liabilities
Litigation
To the knowledge of Porsche SE – which is not a party to the investigations and therefore has only
limited knowledge of the subject matter and status of investigations – the Stuttgart public prosecutor has
initiated investigations against the former members of the executive board Dr. Wendelin Wiedeking and Holger
P. Härter in connection with allegations of information-based manipulation of the market in Volkswagen shares.
According to the public prosecutor, the allegations involve public statements made by representatives of
Porsche SE and the failure to make certain required statements regarding the acquisition of the shareholding in
Volkswagen AG between 2006 and 2009. In addition, the public prosecutor is investigating the two former
members of the executive board in connection with allegations of breach of fiduciary duty to the detriment of
Porsche SE. According to the public prosecutor, there is reason to suspect that the two former members of
the executive board may have taken risks jeopardizing the company’s ability to continue as a going concern by
entering into share price hedging transactions in the course of acquiring the shareholding in Volkswagen AG.
Furthermore, the public prosecutor has launched investigations against Holger P. Härter and two employees of
Porsche SE on suspicion of obtaining credit by deception in connection with a loan that has already been repaid.
The Stuttgart public prosecutor announced in February 2011 that the investigations would take longer than
anticipated and are not expected to be concluded before the start of 2012. The Stuttgart public prosecutor
has to date not issued a statement on the current status of proceedings. Porsche SE considers the allegations
made to be without merit.
In 2010, 46 plaintiffs filed six actions for damages against Porsche SE in the United States District
Court for the Southern District of New York. The plaintiffs alleged damages of more than USD 2.5 billion. In
three of the six actions, the former members of the executive board Dr. Wendelin Wiedeking and Holger P.
Härter are also named as defendants. Plaintiffs alleged in their complaints that, in connection with its
acquisition of a stake in Volkswagen AG during the year 2008, Porsche SE issued false and misleading
statements and engaged in market manipulation in violation of the US Securities Exchange Act as well as in
common law fraud. Porsche SE considers the complaints to be without merit and filed a motion to dismiss. On
30 December 2010, the US court granted the motion to dismiss the complaints in their entirety. Thirty-two of
the original 46 plaintiffs have appealed this decision with the United States Court of Appeals for the Second
Circuit.
€ million 31/12/2011 31/12/2010
Guarantees 0 0
Warranties 0 0
Collateral for third-party liabilities 0 0
Other contingent liabilities 0 0
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