SAN FRANCISCO, CA / ACCESSWIRE / May 11, 2023 / Hagens Berman urges Icahn Enterprises L.P. (NASDAQ:IEP) investors who suffered substantial losses to submit your losses now.
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Icahn Enterprises L.P. (IEP) Investigation:
The investigation focuses on the propriety of IEP's financial reporting, including the accuracy of its mark to market asset values.
On May 2, 2023, Hindenburg Research published a scathing report concluding that, while IEP depositary units trade at a 218% premium to its last reported net asset value ("NAV"), the units are inflated by 75% and its "dividend is entirely unsupported by IEP's cash flow and investment performance, which has been negative for years."
Among other things, Hindenburg accuses IEP inflating its NAV "due to a combination of overly aggressive marks on IEP's less liquid/private investments and continued year to date underperformance." In just one of the examples Hindenburg cites, "IEP owns 90% of a publicly traded meat packing business that it valued at $293 million at year end" while "[t]he company had a market value of only $89 million at the time." In another, Hindenburg observed that IEP valued its auto parts division (which owns Auto Plus) at $381 million in December 2022 (a month before Auto Plus filed for bankruptcy) and, given the $238 million in creditor claims, concluded "we expect IEP's $381 million mark will be written down significantly further."
Most recently, on May 10, 2023, IEP announced that it recorded a non-cash charge of $226 million related to Auto Plus and said that its "remaining equity investment in Auto Plus is now worth $0."
IEP also revealed that "[t]he U.S. Attorney's office for the Southern District of New York contacted Icahn Enterprises L.P. on May 3, 2023 seeking production of information relating to it and certain of its affiliates' corporate governance, capitalization, securities offerings, dividends, valuation, marketing materials, due diligence and other materials."
These events have driven the price of IEP depositary units sharply lower.
"We're focused on investors' losses and whether IEP may have misrepresented its dividend sustainability and asset values," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in IEP and have substantial losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding IEP should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP