The federal securities laws imposed independent disclosure obligations on both Icahn and IEP. These disclosures would have revealed that Icahn pledged over half of IEP's outstanding shares at any given time.
Existing and prospective investors were deprived of required information, as IEP and Icahn delayed disclosing significant equity pledges from at least 2018 to 2022.
Icahn and IEP did not admit to the findings or deny them, but they settled the charges for $500,000 and $1.5 million, respectively.
The SEC claimed that Icahn pledged 51% to 82% of IEP shares to secure billions in personal loans without informing shareholders or regulators.
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