Carl Icahn Settles SEC Charges for $2 Million

Billionaire investor Carl Icahn and his firm Icahn Enterprises LP have reached a $2 million settlement with the U.S. Securities and Exchange Commission (SEC) over allegations of failing to disclose significant pledges of company securities used as collateral for personal loans. Icahn will pay a $500,000 fine while Icahn Enterprises will contribute $1.5 million. The SEC stated that Icahn pledged up to 82% of the company's outstanding securities to secure over $4.6 billion in personal margin loans, a disclosure failure that deprived investors of critical information. This investigation was triggered by a report from Hindenburg Research in May 2023 that negatively impacted the firm's stock. Both Icahn and his firm settled without admitting or denying the charges, agreeing to cease any future violations. The SEC emphasized the importance of transparency in protecting investors' interests.