The article discusses how Carl Icahn’s investment company, Icahn Enterprises, successfully had a lawsuit dismissed that claimed the company artificially inflated its share price through high dividends to help Icahn obtain personal loans. The shareholders in the proposed class action failed to prove material misrepresentations or fraudulent intent on the part of the company.
Highlights:
1. The lawsuit against Icahn Enterprises was dismissed by U.S. District Judge K. Michael Moore in Miami.
2. Carl Icahn agreed to pay $2 million to settle SEC charges related to not disclosing significant borrowing against the shares.
3. Shareholders argued that the true health of Icahn Enterprises was revealed when it had to slash dividends and renegotiate loans after losses in its Auto Parts Plus business.
Summary:
The article covers a lawsuit against Icahn Enterprises alleging the artificial inflation of share prices through high dividends to facilitate personal loans for Carl Icahn. The lawsuit was dismissed for a lack of evidence of material misrepresentations or fraudulent intent. The shareholders have been given a deadline to file an amended complaint, and Carl Icahn has settled SEC charges related to the case.
Editorial content by Sierra Knightley
