Icahn Enterprises LP (NASDAQ: IEP) responded strongly to a short-seller report by Hindenburg Research that accused the investment firm’s founder, Carl Icahn, of mismanagement.
What Happened: Hindenburg’s report alleged that IEP operated a Ponzi-like scheme, utilizing funds from new investors to distribute dividends to previous investors, and raised doubts about the legality of IEP’s then-15.8% dividend yield.
The report also criticized Icahn’s use of leverage in the face of sustained losses, a combination that Hindenburg said, “rarely ends well.”
In response, Icahn Enterprises said that it had around $2 …
