Icahn Enterprises Under Investigation
Posted on 05/11/2023
Famed investor Carl Icahn’s company revealed in an SEC filing that it is under investigation by federal prosecutors. The U.S. Attorney’s office for the Southern District of New York reached out to Icahn about corporate governance and other concerns the after Hindenburg Research made accusations against the firm regarding Icahn’s alleged use of leverage. Icahn Enterprise stock has fallen dramatically, losing 40% of its value since the investigation was made public.
Icahn made a statement, saying Hindenburg’s “modus operandi is to launch disinformation campaigns to distort companies’ images, damage their reputations and bleed the hard-earned savings of individual investors.” The firm also maintained: “We believe that we maintain a strong compliance program and, while no assurances can be made and we are still evaluating the matter, we do not currently believe this inquiry will have a material impact on our business.”
