NEW YORK (Reuters)—Porsche Automobil Holding SE persuaded a U.S. federal appeals court to uphold the dismissal of a lawsuit by more than 30 hedge funds that claimed to suffer big losses because the German automaker fraudulently cornered the market in Volkswagen AG shares. The 2nd U.S. Circuit Court of Appeals on Friday [Aug. 15] said Porsche's alleged wrongdoing was "so predominantly foreign" that it could not be held liable in U.S. federal courts under domestic securities fraud laws. It also said that the hedge funds might still "conceivably" show that U.S. laws should apply, and try to amend their lawsuit in Manhattan federal court. The unsigned 48-page decision was issued 2-1/2 years after oral arguments. It is the latest of several 2nd Circuit decisions to make it harder to pursue U.S. lawsuits over foreign conduct, since a 2010 U.S. Supreme Court ruling in Morrison v. National Australia Bank Ltd limited the reach of U.S. securities laws. http://www.hedgeworld.com/open_news/read_newsletter_aa.cgi?section=dail&story=dail23764.html
1) If somebody "inflicts" large losses on hedge funds, no "crime" has actually been committed. 2) It's known as "market justice".