Wolf Popper LLP Reminds Investors of the Deadline to Lead Class Action Against Icahn Enterprises
Case Updates |
06/09/2023
NEW YORK, June 9, 2023: Wolf Popper LLP reminds investors of the July 10, 2023 deadline to file a lead plaintiff motion in a securities class action lawsuit against Icahn Enterprises L.P. (“Icahn Enterprises”) (NASDAQ:IEP) on behalf of investors who purchased or otherwise acquired IEP units between August 2, 2018 and May 9, 2023, inclusive (the “Class Period”).
The lawsuit, captioned Okaro v. Icahn Enterprises L.P., No. 23-cv-21773 (S.D. Fla.), alleges violations of the Securities Exchange Act of 1934 for Icahn Enterprises’ failure to disclose (1) that Icahn Enterprises was inflating its net asset value; (2) that the Company was using money taken in from new investors to pay out dividends to old investors; and (3) that as a result, the Company would become the subject of criminal and/or regulatory scrutiny.
Icahn Enterprises is a master limited partnership that holds Carl Icahn’s investments in public securities and private companies.
Before the market opened on May 2, 2023, Hindenburg Research published a short seller report headlined “Icahn Enterprises: The Corporate Raider Throwing Stones From His Own Glass House.” The report alleges a number of examples of potentially overinflated assets held by Icahn Enterprises. For example, Icahn Enterprises owned 90% of a publicly traded meat packaging business and valued that stake on December 31, 2022 at $243 million when the company only had a market value of $89 million. In addition, Icahn Enterprises reported that the value of its real estate holdings “have been remarkably stable” over the past years even though the Trump Plaza in Atlantic City was razed in 2021 and a country club almost went insolvent before it was taken over by members during that timeframe. On this news, Icahn Enterprises’ unit price has fallen $10.42 per unit in intraday trading to $40.00, down 20.7% on heavy volume.
The report further alleges that Icahn Enterprises’ dividend is unsupported by IEP’s cash flow and investment performance. According to the report, Icahn Enterprises’ investments and operations have burned billions of capital and the Company has been forced to support its dividend using regular open market sales of IEP units through ATM offerings. The report alleges this scheme is ponzi-like and unsustainable.
Investors who have lost over $50,000 trading in Icahn Enterprises’ units and who would like to discuss the investigation should contact Adam Savett at (212) 451-9655, or asavett@wolfpopper.com.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. Wolf Popper’s reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. For more information about Wolf Popper, please visit the Firm’s website at www.wolfpopper.com.
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