Hagens Berman has filed a complaint alleging that Icahn Enterprises (IEP) failed to disclose to investors that: (1) IEP was inflating its net asset value (“NAV”); (2) the company was using money taken in from new investors to pay dividends to old investors; and (3) as a result, the company would become the subject of criminal and/or regulator scrutiny.

Investors began to learn the truth on May 2, 2023, when Hindenburg Research published a scathing report concluding that IEP (1) is a “ponzi-like economic structure[]” and (2) inflates its NAV “due to a combination of overly aggressive marks on IEP’s less liquid/private investments and continued year to date underperformance.” 

Hindenburg cited two examples of improper marks.  First, “IEP owns 90% of a publicly traded meat packing business that it valued at $293 million at year end” while “[t]he company had a market value of only $89 million at the time.”  Second, IEP valued its auto parts division (which owns Auto Plus) at $381 million in December 2022 (a month before Auto Plus filed for bankruptcy) and, given the $238 million in creditor claims, concluded “we expect IEP’s $381 million mark will be written down significantly further.”

Then, on May 10, 2023, IEP announced that it recorded a non-cash charge of $226 million related to Auto Plus and said that its “remaining equity investment in Auto Plus is now worth $0.” IEP also revealed that the U.S. Attorney’s office for the Southern District of New York is seeking production of information relating to it and certain of its affiliates’ corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other materials.

These events have driven the price of IEP depositary units sharply lower.

If you invested in IEP and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses.

Whistleblowers: Persons with non-public information regarding IEP should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the IEP securities class-action case about?

This lawsuit on behalf of investors nationwide alleges that Icahn Enterprises L.P. (IEP) failed to disclose to investors that it had inflated its net asset value, used money taken in from new investors to pay dividends to old investors and that, as a result, the company would become the subject of criminal and/or regulatory scrutiny. This improper behavior caused the price of IEP depositary units to drop, leaving many investors with huge losses. This class-action lawsuit aims to recover damages on behalf of affected investors and hold the company accountable for alleged securities law violations.

What is a Ponzi scheme?

A Ponzi scheme is a fraudulent investment scheme that promises high returns with little or no risk to investors. The scheme operates by using the capital from new investors to pay returns to earlier investors, creating the illusion of a profitable and legitimate business. However, in reality, the returns are not generated by any legitimate business activity but rather by attracting more and more investors into the scheme. Eventually, when new investor inflow slows down, the scheme collapses, and the majority of investors lose their money.

On May 2, 2023, Hindenburg Research published a scathing report concluding that IEP is a “ponzi-like economic structure[]” and inflates its net asset value “due to a combination of overly aggressive marks on IEP’s less liquid/private investments and continued year to date underperformance.” 

WHAT SHOULD I DO?

I worked at IEP. What should I do?

If you were an employee of IEP during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions. 

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in IEP during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any IEP investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on the Canadian Exchange. Can I participate?

No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings.   Fill out the form to find out your rights.