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SEC Charges Icahn and his Company with Failure to Disclose Pledges
Summary:
- Carl Icahn and his company, Icahn Enterprises, have agreed to pay $15 million and $500,000, respectively, to settle charges brought by the Securities and Exchange Commission (SEC).
- The SEC alleged that Icahn and his company failed to disclose pledges of the company's stock as collateral for personal loans.
- The settlement resolves the SEC's investigation into the matter.
Details of the Charges:
According to the SEC's complaint, Icahn and Icahn Enterprises failed to disclose to investors that Icahn had pledged approximately 10% of the company's outstanding shares as collateral for personal loans.
The SEC alleged that this failure to disclose violated the federal securities laws, which require companies to disclose material information that could affect investors' decisions.
Icahn and Icahn Enterprises have agreed to pay the penalties without admitting or denying the SEC's allegations.
Impact of the Settlement:
The settlement resolves the SEC's investigation into the matter and brings the case to a close.
The settlement also sends a message to other companies and individuals that the SEC will take action against those who fail to comply with the federal securities laws.
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