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Icahn Enterprises L.P. – Securities Investigation

Icahn Enterprises L.P. - Securities Investigation featured by top securities fraud attorneys, the White Law Group

Icahn Enterprises L.P. – Investigating Potential Claims 

The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended Icahn Enterprises L.P. to investors. 

Icahn Enterprises L.P., a master limited partnership, is a diversified holding company owning subsidiaries currently engaged in the following businesses: Investment, Energy, Automotive, Food Packaging, Real Estate, Home Fashion and Pharma.  

According to its prospectus filed with the SEC, an investment in Icahn’s  depositary units “involves a high degree of risk,” including the following: 

  • Sales of the depositary units may be dilutive or cause the market price of its depositary units to fall. 
  • Management will have broad discretion as to the use of the proceeds from this offering, and it may not use the proceeds effectively. You basically will be relying on the judgment of its management regarding the application of the proceeds of the offering.  
  • Icahn’s depositary units will be sold in “at-the-market” offerings, and investors who buy depositary units at different times will likely pay different prices. Investors may experience a decline in the value of their depositary units.  
  • The actual number of depositary units the company will issue under the open market sale agreement, at any one time or in total, is uncertain. 

General Risks of Investing in Master Limited Partnerships (MLPs) 

Investing in Master Limited Partnerships (MLPs) can offer attractive income and tax advantages, but there is also a long list of risks associated with this investment vehicle. It’s important to thoroughly research and understand the specific MLPs you are considering investing in, including their financial health, industry dynamics, and risk factors.  

Here are some key risks to consider: 

  • MLPs are subject to market volatility, meaning their prices can fluctuate based on broader market conditions. Economic factors, interest rate changes, and investor sentiment can impact the value of MLP units. If the overall market experiences a downturn, MLP prices may decline. 
  • Many MLPs operate in the energy sector, particularly in oil and gas infrastructure. This means that they are exposed to commodity price fluctuations. If energy prices drop significantly, it can adversely affect the revenues and profitability of MLPs. Lower cash flows might result in reduced distributions to investors. 
  • Changes in interest rates can affect the cost of borrowing for MLPs and their ability to refinance debt. Rising interest rates can increase borrowing costs, putting pressure on MLPs’ profitability and distributions. 
  • MLPs operate within a complex regulatory framework. Changes in laws, regulations, or tax policies can have a significant impact on MLPs’ operations and profitability. Alterations to tax laws or the removal of MLP-specific tax advantages could affect the attractiveness of these investments. 
  • There are operational risks associated with the specific industries that the master limited partnerships operate in. These risks can include supply chain disruptions, accidents, environmental liabilities, and regulatory compliance issues. Poor business performance can lead to reduced revenues, distributions, and the overall value of the MLP. 
  • As an MLP investor, you typically hold limited control over the partnership’s decision-making process. General partners have more control and make operational and financial decisions. Limited partners (investors) generally have limited voting rights and rely on the general partner’s expertise to manage the business effectively. This lack of control can be a risk if the general partner makes poor decisions or engages in unethical practices. 
  • While MLPs offer tax advantages, they can also introduce complexity to investors’ tax situations. MLP investors receive a K-1 form, which reports their share of the partnership’s income, deductions, and credits. The tax treatment can vary depending on the specific MLP and the investor’s circumstances. Investors may need to consult with tax professionals to ensure compliance and understand the tax implications fully. 

Broker Due Diligence  – Icahn Enterprises L.P.

Broker due diligence helps protect the interests of investors. By conducting thorough research and analysis, brokers can identify potential risks, conflicts of interest, or misleading information that could harm investors. This ensures that brokers act in the best interests of their clients and provide suitable investment recommendations.  

Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor considering that investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income.   

Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.    

What is FINRA Arbitration? 

A FINRA arbitration claim refers to a legal proceeding initiated by an investor against a brokerage firm or associated individuals through the Financial Industry Regulatory Authority (FINRA) arbitration process. FINRA is a self-regulatory organization that oversees brokerage firms and their registered representatives in the United States. 

When a dispute arises between an investor and a brokerage firm or its representatives, instead of pursuing the matter in a court of law, the parties may choose to resolve their dispute through arbitration. FINRA provides a forum for the resolution of such disputes through its arbitration process. 

If you are concerned about your investment in Icahn Enterprises L.P., the White Law Group may be able to help you by filing a FINRA arbitration claim against your brokerage firm. For a free consultation with a securities attorney, please call 888-637-5510.     

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to helping investors in claims in all 50 states against their financial professional or brokerage firm. Since the firm launched in 2010, it has handled over 700 FINRA arbitration cases.        

Our firm represents investors in all types of securities related claims, including claims involving stock fraud, broker misrepresentation, churning, unsuitable investments, selling away, and unauthorized trading, among many others.         

With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions attempt to recover their investment losses.  For more information, please visit our website, www.whitesecuritieslaw.com.       



Tags: , , , , Last modified: May 11, 2023