In the report, published on May 2, Hindenburg claimed that Icahn Enterprises has been using inflated asset valuations. The report also pointed to “ponzi-like economic structures” at the holding company — alleging that Icahn has used money from new investors to pay out dividends to old ones. Based in Sunny Isles Beach, Florida, Icahn Enterprises has stakes in businesses ranging from food packaging and automotive to real estate and pharmaceuticals.
Since Hindenburg released its short position, the market value and stock for Icahn Enterprises (IEP) has plummented. The company’s market cap was cut by more than half this month — from about $18 billion on May 1 to $7.01 billion Thursday — and IEP’s stock has fallen almost 63% since the start of May.