ICAHN ENTERPRISES INVESTOR ALERT: Edelson Lechtzin LLP Urges Shareholders with Substantial Losses of the Looming Lead Plaintiff Deadline in the Securities Fraud Class Action Against Icahn Enterprises L.P. (NasdaqGS: IEP)
NEWTOWN, PA, May 17, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Icahn Enterprises L.P. (NasdaqGS: IEP) common stock between August 2, 2018 and May 9, 2023, inclusive (the “Class Period”).
Investors who purchased Icahn Enterprises common stock may move the United States District Court for the Southern District of Florida to appoint them as lead plaintiff, no later than July 10, 2023. Current holders of IEP stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Icahn Enterprises
Headquartered in Sunny Isles Beach, Florida, Icahn Enterprises is a holding company run by activist investor Carl Icahn, which owns subsidiaries engaged in operating businesses across industries that include petroleum refiners, auto parts distributors, food packaging companies and real estate. The Company’s business model is to purchase securities of undervalued companies and become actively involved in such companies to improve shareholder value. IEP shares offer investors exposure to Icahn’s personal portfolio, and a consistent $2 per quarter cash dividend, amounting to an annualized yield of 15%, which is the highest dividend yield of any U.S. large cap company. IEP’s dividend has been the key allure for its retail investor base.
The Securities Fraud Claims
The lawsuit alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, according to a Hindenburg Research report published on May 2, 2023: (i) IEP’s last year of significant outperformance was 2013; (ii) IEP shares trade at a 218% premium to its last reported net asset value (NAV), which is far higher than all comparable closed-end holding companies; (iii) IEP’s dividend has been made possible, in part, because Carl Icahn, who owns roughly 85% of IEP, has been largely taking dividends in units (instead of cash), thereby reducing the overall cash outlay required to meet the dividend payment for remaining unitholders; (iv) the dividend is entirely unsupported by IEP’s cash flow and investment performance, which has lost about 53% since 2014; (v) Icahn has pledged 181.4 million IEP units, about 60% of his holdings, for personal margin loans; and (vi) as a result, it is expected that IEP will eventually cut or eliminate its dividend entirely. Hindenburg Research concludes that “Icahn has been using money taken in from new investors to pay out dividends to old investors.” On news of the Hindenburg Research report, the price of IEP shares fell $10.06 per share, or 20%, to close at $40.36 per share on May 2, 2023.
Then, on May 10, Icahn Enterprises disclosed that the U.S. Attorney’s office for the Southern District of New York contacted Icahn Enterprises on May 3, 2023, seeking production of information relating to the Hindenburg Research report. On this news, Icahn Enterprises stock price fell $5.75, or 15.1%, to close at $32.22 per share on May 10, 2023.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Email: [email protected]
Web: www.edelson-law.com
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.