Icahn Enterprises Lawsuit Dismissed by Judge

A federal judge has dismissed a shareholder lawsuit against Icahn Enterprises, which accused the firm of artificially inflating its stock price through excessive dividends to facilitate Carl Icahn's personal loans. U.S. District Judge K. Michael Moore ruled that the lawsuit failed to demonstrate material misrepresentations or fraudulent intent by the company. The lawsuit stemmed from a May 2023 report by Hindenburg Research, which alleged that Icahn's business practices resembled a Ponzi scheme. Following the report, Icahn Enterprises' stock has plummeted over 75%, prompting a significant cut in its dividend payouts. Icahn expressed satisfaction with the dismissal, labeling the lawsuit as meritless and denying plans to sell his shares in the company. The plaintiffs have until October 14 to file an amended complaint if they choose to pursue the matter further.