Icahn Enterprises wins dismissal of investor lawsuit

Source: Reuters

Icahn Enterprises wins dismissal of investor lawsuit

Reuters
Updated Fri, September 13, 2024 at 7:19 PM EDT 2 min read

(Reuters) -Carl Icahn's investment company Icahn Enterprises won the dismissal of a lawsuit claiming it artificially inflated its share price by issuing unsustainably high dividends to help the billionaire investor obtain large amounts of personal loans.

In a decision on Friday, U.S. District Judge K. Michael Moore in Miami said shareholders in the proposed class action failed to show that the company made material misrepresentations or omissions and did so with an intent to defraud.

Lawyers for the shareholders did not immediately respond to requests for comment. A spokesman for Icahn Enterprises did not immediately respond to a similar request. Moore gave the shareholders until Oct. 14 to file an amended complaint.

Icahn Enterprises shares have fallen more than three-quarters since May 2023, when the short-selling firm Hindenburg Research questioned its dividends and Icahn's borrowing, and accused Icahn of overseeing a "Ponzi-like economic structure."

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