UPDATE 1-Funds sue Porsche in U.S. for $1 bln over VW


* Lawsuit over attempted 2008 takeover of Volkswagen

* Names former CEO Wiedeking and VP of Finance Haerter

NEW YORK, Jan 25 (Reuters) - A group of investment funds sued Porsche SE and two of its former executives on Monday seeking to recover more than $1 billion in purported losses from Porsche's attempted takeover of Volkswagen AG in 2008.

The lawsuit filed in Manhattan federal court alleged that Porsche Automobil Holding SE and former Chief Executive Officer Wendelin Wiedeking and former Vice President of Finance Holger Haerter repeatedly misled investors and lied about Porsche's positions and intentions with respect to VW.

Plaintiffs were victims of what the financial media called "a massive short squeeze" and a "short squeeze of historic proportions," the lawsuit alleged.

A spokesman for Porsche in the United States could not immediately be reached for comment on the lawsuit.

The funds alleged in the lawsuit that "Porsche cornered the market in VW shares by breaking the law. Specifically, Porsche cornered the market in VW shares with false denials of its intent to take over VW and by engaging in a series of manipulative derivatives trades to hide the extent to which Porsche controlled VW shares."

The funds include Elliott Associates LP, Elliott International LP, The Liverpool Limited Partnership, Glenhill Capital LP, Glenhill Capital Overseas Master Fund LP, Glenhill Concentrated Fund LP, Glenview Capital Partners LP, Glenview Institutional Partners LP, Glenview Capital Master Fund Ltd, GCM Little Arbor Partners LP, GCM Little Arbor Institutional Partners LP, GCM Little Arbor Master Fund Ltd, GCM Opportunity Fund LP, Glenview Capital Opportunity Fund LP, Glenview Offshore Opportunity Master Fund Ltd, Perry Partners LP and Perry Partners International Inc.

The case is Elliott Associates LP et al v Porsche Automobil Holding SE, U.S. District Court for the Southern District of New York, No. 10-0532. (Reporting by Grant McCool; Editing by Tim Dobbyn)



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