Have You Lost Money In Icahn Enterprises (IEP)?

Boca Raton, Florida – June 14, 2023 – If you purchased shares of Icahn Enterprises (IEP) between August 2, 2018 and May 9, 2023, please contact Silver Law Group, a nationally-recognized class action law firm, to discuss your options to recover your investment losses.

A class action lawsuit has been filed against Icahn Enterprises (IEP). To discuss how Silver Law Group may be able to help recover your investment losses, contact us at 800-975-4345 for a confidential no-cost consultation.

Icahn Enterprises (IEP) is a publicly-traded American conglomerate controlled by billionaire activist investor Carl Icahn, and has investments in industries such as automotive, real estate, energy, and home fashion.

Over his long career Icahn has earned a reputation as a feared corporate raider who makes risky bets and antagonizes CEOs. Carl Icahn and his son Brett own about 85% of IEP.

Hindenburg Research Report Alleges IEP Is Overvalued And Ponzi Scheme 

On May 2, 2023, short selling firm Hindenburg Research published a report alleging that IEP shares were vastly overvalued and that the company uses a Ponzi-like structure involving using new investor money to pay dividends to old investors. Shares of IEP dropped as much as 20% the day the report was published, and fell over 55% in May.

The report from Hindenburg notes that most closed-end holding companies trade at a discount to their net asset value (NAV), but that IEP trades at a 218% premium to its last reported NAV, more than double the next highest company’s premium.

Due to the NAV premium, alleged inflated valuation for “less liquid and private assets”, and performance losses year to date, Hindenburg states that “IEP units are inflated by 75%”.

The high premium to NAV seems to be due to the incredibly high 15.8% dividend yield, the highest of any large cap American company, and Icahn’s legendary status, the report states.

Icahn Enterprises’ dividend yield is almost 60% more than the next highest dividend for a large cap U.S. company, and not sustainable according to Hindenburg.

The day after the Hindenburg report was released, Icahn stated that it would delay the release of its first quarter earnings report. When the earnings report came out, it stated that the office of the U.S. Attorney for the Southern District of New York had contacted IEP seeking information relating to “corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other disclosures.”

The loss of value of IEP units has been drastic. On May 1, the day before the Hindenburg report came out, IEP’s market capitalization was over $17.5 billion. As of this writing, it’s just over $8 billion, causing massive losses for investors in the company.

The class action lawsuit against Icahn Enterprises alleges that the company violated the federal securities laws by making false and/or misleading statements to investors.

Recover Icahn Enterprises (IEP) Losses

Silver Law Group is a law firm that represents victims of securities and investment fraud. Our attorneys represent investors nationwide in class action lawsuits against issuers in state and federal court and in securities arbitration claims in cases of stockbroker misconduct.

Scott Silver, managing partner of Silver Law Group, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice. Contact us for a consultation at no-cost at ssilver@silverlaw.com or call (800) 975-4345.

Tags: Investment Losses, recover iep losses, Class Action, IEP, silver law group, icahn enterprises, scott silver