Icahn Enterprises (NASDAQ: IEP): Investment Losses? Contact KlaymanToskes

Rhea-AI Summary

Icahn Enterprises (NASDAQ: IEP) share prices have fallen dramatically following a report by Hindenburg Research alleging Ponzi-like economic structures within the company. The report claims that Icahn Enterprises has been using money from new investors to pay out dividends to old investors. The U.S. Attorney's office has contacted Icahn Enterprises for information related to capitalization and securities offerings.

Positive

• Icahn Enterprises' share prices have fallen dramatically, presenting a potential buying opportunity for investors looking for a bargain. The stock is currently trading at a 52-week low, making it an attractive option for those seeking undervalued assets.

Negative

• The allegations of Ponzi-like economic structures within Icahn Enterprises could have a negative impact on the company's reputation and investor confidence. The investigation by the U.S. Attorney's office may also lead to legal and regulatory challenges for the company.

KlaymanToskes Investigates Brokerage Firms That Recommended Icahn Enterprises to Customers

NEW YORK--(BUSINESS WIRE)-- KlaymanToskes reports that Icahn Enterprises (NASDAQ: IEP) share prices have fallen dramatically, following the company’s 40% drop and plunge to a 52-week low earlier this month. The crash came after Hindenburg Research published a report which alleged Icahn Enterprises, led by Carl Icahn, has “Ponzi-like economic structures.”

According to Hindenburg, “Icahn has been using money taken in from new investors to pay out dividends to old investors,” and “such Ponzi-like economic structures are sustainable only to the extent that new money is willing to risk being the last one ‘holding the bag.’”

Hindenburg noted that Icahn Enterprises’ 15.8% dividend yield is the largest of any U.S. large cap name, and argues that the high yield is not being achieved through legal means.

A regulatory filing made after the report revealed that the U.S. Attorney’s office for the Southern District of New York contacted Icahn Enterprises for information related to capitalization, securities offerings, due diligence, and other materials.

The report’s final conclusion stated “at this stage, Icahn’s net worth is reliant on selling overpriced IEP units to retail investors while convincing them that they will be rewarded with a consistent, safe dividend in perpetuity, despite extensive evidence to the contrary.”

According to a Prospectus Supplement filing, Morgan Stanley & Co. LLC was the sole book-running manager of Icahn Enterprises’ sale of two million depositary units.

Investors that suffered losses in Icahn Enterprises at the hands of their brokerage firm and/or broker/financial advisor, are encouraged to contact attorney Lawrence L. Klayman, Esq., for a free consultation at 888-997-9956, or lklayman@klaymantoskes.com to discuss their recovery options.

Disclosure: Investors that had self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our services.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230515005769/en/

KlaymanToskes, P.A.

Lawrence L. Klayman, Esq.

888-997-9956

lklayman@klaymantoskes.com

www.klaymantoskes.com

Source: KlaymanToskes

FAQ

What is the current share price of Icahn Enterprises?

The current share price of Icahn Enterprises can be found on the NASDAQ under the ticker symbol IEP.

What are the allegations made against Icahn Enterprises?

Hindenburg Research published a report alleging that Icahn Enterprises has been using money from new investors to pay out dividends to old investors, creating Ponzi-like economic structures.

What is the dividend yield of Icahn Enterprises?

According to Hindenburg Research, Icahn Enterprises has a dividend yield of 15.8%, the largest among U.S. large cap names.

Has the U.S. Attorney's office contacted Icahn Enterprises?

Yes, the U.S. Attorney's office for the Southern District of New York has contacted Icahn Enterprises for information related to capitalization, securities offerings, due diligence, and other materials.