Porsche 2012 Annual Report Download - page 223

Actions for damages in Germany and England
In 2009, 2010 and 2011, market participants in Germany applied for conciliatory proceedings
against Porsche SE and in part against Volkswagen AG with regard to the assertion of claims for
damages on the basis of alleged breaches of statutory capital market regulations in connection
with the acquisition of a shareholding in Volkswagen AG. Various market participants have filed
further applications for conciliatory proceedings against Porsche SE based on the same claims;
the company received these applications in January, February and November 2012. Some of the
new applications are also directed against Volkswagen AG and in one case against Porsche AG.
All of the claims alleged in conciliatory proceedings relate to alleged lost profits or alleged losses
incurred estimated by the market participants to total approximately €3.3 billion. Porsche SE
considers the allegations to be without merit and has not taken part in the conciliatory pro-
ceedings.
In January 2011, an individual filed a claim for damages against Porsche SE and another de-
fendant in the amount of approximately €3 million. The plaintiff claims to have entered into op-
tions relating to shares in Volkswagen AG in 2008 on the basis of inaccurate information and the
omission of information as well as market manipulation by Porsche SE and to have incurred
losses from these options due to the share price development in 2008 in the amount claimed.
On 27 June 2012 a hearing took place. By decision of 19 September 2012 the Regional Court of
Braunschweig dismissed the claim. The plaintiff did not appeal the judgment. Thus, the judg-
ment has become final and binding.
In October 2011, ARFB Anlegerschutz UG (haftungsbeschränkt), Berlin, brought an action
before the Regional Court of Braunschweig against Porsche SE and Volkswagen AG based on
claims for damages allegedly assigned to it by 41 investment funds, insurance companies and
other companies in the amount of approximately €1.1 billion. Some of the 41 companies are also
applicants in the aforementioned conciliatory proceedings. Four of the companies are hedge
funds that have also filed claims against Porsche SE before a US Federal Court that were dis-
missed. In December 2011, this claim was extended to include the alleged claims for damages
filed by ARFB Anlegerschutz UG (haftungsbeschränkt) on behalf of another 24 entities for an
allegedly assigned right in the amount of approximately €700 million. Two of these other companies
are hedge funds that have also filed claims against Porsche SE before a US Federal Court that
were dismissed. In connection with the extension of the claim in December 2011, ARFB Anleg-
erschutz UG (haftungsbeschränkt) also partly withdrew its original action to the extent that al-
leged claims for damages of an investment fund in the amount of approximately €4.5 million
arising from an allegedly assigned right are no longer upheld. In addition, ARFB Anlegerschutz
UG (haftungsbeschränkt) filed another action against the company at the Regional Court of
Braunschweig in December 2011, asserting alleged claims for damages on behalf of another five
companies, again from the alleged assigned right, for a total of approximately €351 million. The
plaintiff alleges that, in 2008, on the basis of inaccurate information and the omission of infor-
mation as well as market manipulation by Porsche SE, the companies behind the complaints
either failed to participate in price increases of shares in Volkswagen AG and, hence, lost profits
or entered into derivatives relating to shares in Volkswagen AG and incurred losses from these
transactions due to the share price development in the amount claimed. Porsche SE considers
the alleged claims to be without merit and has responded by filing motions to dismiss. On
Porsche SE's petitions for providing security for the costs of the proceedings filed in both
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