Carl Icahn and Icahn Enterprises Reach $2 Million Settlement with SEC
Background of the Settlement
Billionaire activist investor Carl Icahn and his company, Icahn Enterprises, will pay a combined $2 million to resolve allegations from the Securities and Exchange Commission (SEC). These charges stem from failure to disclose that a significant portion of Icahn Enterprises' outstanding shares was pledged for personal margin loans. The SEC noted that Icahn failed to provide essential details about these financial agreements.
Details of the Charges
- Billionaire Icahn pledged between 51% and 82% of his company’s shares as collateral.
- Failure to disclose these pledges occurred from February 2022 until July 2023.
- Icahn will pay $500,000 as civil penalties, and Icahn Enterprises will contribute $1.5 million.
Comments from the SEC
Osman Nawaz, chief of the SEC’s Enforcement Division’s Complex Financial Instruments Unit, stressed that both Icahn and IEP had improper disclosure failures. These shortcomings deprived investors of crucial insights about the firm’s financial health.
Response from Carl Icahn
Icahn criticized the allegations from short-seller firm Hindenburg Research, claiming they negatively impacted Icahn Enterprises and its investors. He expressed relief in resolving the matter, focusing on the company's operations for unit holders' benefit.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.