US hedge fund managers are suing Porsche for £620 million, claiming the German sports car maker lied about its plans to mount a takeover of VW.
Porsche, which is being sued alongside former CEO Wendelin Wiedeking and ex-finance boss Holger Haerter, has been accused of misleading investors about its intentions for VW.
Porsche revealed in 2008 that it had built up a 75 per cent shareholding in VW, an announcement that briefly sent VW shares skyrocketing.
The hedge fund managers are claiming that Porsche manipulated the market and committed securities fraud.
"Specifically, Porsche cornered the market in VW shares with false denials of its intent to take over VW" says the lawsuit, "and by engaging in a series of manipulative derivatives trades to hide the extent to which Porsche controlled VW shares".
Porsche denies the accusations, a spokesmen telling Sky News that the company has "always abided by current capital markets law".