Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The whole saga has led IEP stock lower with prices dropping 15.14% to $32.22 at the close of trading on Wednesday.
The woes for Carl Icahn’s Icahn Enterprises LP (NASDAQ: IEP) are far from being over amid new revelations that the US attorney’s office for the Southern District of New York is digging deep and has opened a probe into the company. As reported by CNBC citing the company’s latest disclosures, the Attorney’s office reached out to the company last Wednesday as it sought information into every aspect of the company.
Some of the requested information includes details on marketing materials, due diligence, corporate governance, valuation, capitalization, valuation, and securities offerings. The woes of Icahn Enterprises started with the deep revelations from short-seller Hindenburg Research. The probes from the regulator will seek to determine whether or not the valuation of the company is inflated as alleged by Hindenburg Research.
In a bid to allay the fears in the heart of its investors, Icahn said the regulatory probe has not come with any allegations on the company or its founder as of yet.
“The US Attorney’s office has not made any claims or allegations against us or Mr. Icahn with respect to the foregoing inquiry,” Icahn Enterprises said in the 10-Q filing.
Icahn Enterprises is also not sitting on its oars and allowing Hindenburg Research’s allegation to fly by. The company claimed that the report is “misleading and self-serving” and that the firm is “wantonly destroying property and harming innocent civilians”.
“Mr. Anderson’s modus operandi is to launch disinformation campaigns to distort companies’ images, damage their reputations and bleed the hard-earned savings of individual investors,” Icahn Enterprises said. “But, unlike many of its victims, we will not stand by idly. We intend to take all appropriate steps to protect our unitholders and fight back.”
The whole saga has led the company’s stock lower with prices dropping 15.14% to $32.22 at the close of trading on Wednesday. Over the course of the past week, the company’s valuation has dropped by about 40% since the Hindenburg Research publication.
Icahn Enterprises Probe: Another Victim of Hindenburg’s Revelation
That the regulatory searchlight and probe is currently beamed on Icahn Enterprises based on the revelations from the short seller is not entirely a new occurrence. In fact, Hindenburg Research has caused a serious torpedo in the shares and corporate re-alignment of different companies over the past month including Jack Dorsey’s Block Inc (NYSE: SQ) and India’s Adani Group.
As reported earlier by Coinspeaker, Hindenburg Research accused Block of running a fraudulent operation that takes advantage of the demographics it claims to serve, the unbanked. The revelations at the time also caused a massive plunge in the shares of the payment firm, of which the company claimed the claims made by the short seller does not represent its reality.
Hindenburg has played the cop, putting different firms on Wall Street and beyond on their toes.