Gibbs Law Group Investigates Potential Securities Law Violations
Gibbs Law Group reminds investors that a class action lawsuit has been filed against Icahn Enterprises L.P. (NASDAQ: IEP) on behalf of investors who purchased Icahn securities between August 2, 2018, and May 9, 2023. We encourage investors to contact Gibbs Law Group before July 10, 2023 to discuss your legal rights and options. The lawsuit seeks to recover losses on behalf of Icahn investors under the federal securities laws.
To join the Icahn class action lawsuit or to speak privately with our legal team about your rights in this class action lawsuit, click here or call (888) 410-2925.
On May 2, 2023, shares of Icahn Enterprises dropped as much as 20% in intraday trading after Hindenburg published a report alleging the company is grossly overvalued and resembles a “Ponzi-like” structure. According to the Hindenburg report, “Icahn has been using money taken in from new investors to pay out dividends to old investors.” The report further alleges that the 15.8% dividend investors enjoy is unsustainable and only possible due to the at-the-money stock offering program used by Icahn. The report claims that Icahn trades at a 218% premium compared to its stated net asset value (NAV), which indicates the stock could be overvalued.
On May 3, 2023, the day after the Hindenburg report came out, Icahn announced it would delay releasing its first quarter earnings report until May 10. The earnings report states that the U.S. Attorney’s office for the Southern District of New York contacted Icahn Enterprises and is seeking production of information relating to its affiliates’ “corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other materials.”
Following this news, Icahn’s stock price dropped over 15% on May 10, 2023, to close at $32.22 per share, further harming investors. As of May 23, 2023, ICAHN shares have plummeted 43% since the publication of the Hindenburg report, according to Insider.
What Should Icahn Investors Do?
If you invested in Icahn, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. The class action lawsuit alleges that Icahn Enterprises L.P. has violated federal securities laws by providing false or misleading statements to investors.
About Gibbs Law Group
Gibbs Law Group represents investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Women Lawyers in California.”
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CONTACT: EILEEN EPSTEIN