A group of hedge funds led by Elliott Associates and Black Diamond Offshore Ltd appealed the dismissal of their $2 billion lawsuit against German automaker Porsche SE.

The hedge funds filed notices of their appeal in Manhattan federal court late on Friday.

The hedge funds had claimed the Stuttgart-based carmaker deliberately deceived the market as to its intentions to acquire Volkswagen, publicly denying plans to take over the company while quietly buying nearly all the freely traded ordinary shares of Volkswagen.

When Porsche revealed its holdings in October 2008, shares of VW soared, triggering losses at the hedge funds, which had bet on a decline in VW shares.

Shares in Porsche jumped 10 percent after U.S. District Judge Harold Baer dismissed the case on December 31, saying the hedge funds could not maintain securities fraud claims based on Porsche's alleged short squeeze.

(Reporting by Ann Saphir; Editing by Vicki Allen)

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