By Ilka Kopplin and Friedrich Geiger 

STUTTGART, Germany--A German court Monday dismissed claims from several institutional investors against Porsche Automobil Holding SE for damages in connection with the acquisition of Volkswagen AG shares between 2005 and 2008.

Around two dozen hedge funds, including Viking Global Investors, Glenhill Capital and Greenhill, claimed a total EUR1.36 billion ($1.89 billion).

The lawsuit is one of several filed by investors against Porsche Holding in connection to the company's attempted takeover of German car maker Volkswagen. They accused Porsche of having provided inaccurate market information. In the event, the takeover attempt failed and Porsche Holding sold its sports-car making business to Volkswagen and became a major shareholder in the company.

The regional court in Stuttgart said it doesn't agree with the plaintiffs' allegation that Porsche Holding violated bonos mores, or moral practice. The parties can appeal the decision.

A Porsche spokesman said the ruling strengthens the company's view that claims in two similar lawsuits filed to courts in Brunswick and Hannover are also unfounded.

Write to Ilka Kopplin at ilka.kopplin@wsj.com and Friedrich Geiger at friedrich.geiger@wsj.com

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