Icahn Sues Hedge Fund Over Bond Sale ‘Sabotage’

Feb 24 2010 | 2:22am ET

Carl Icahn is fighting back against a Texas hedge fund honcho he calls a “serial suer.”

The billionaire investor and hedge fund manager has filed a countersuit against Geoffrey Raynor, whose Q Investments and Nineteen Eighty-Nine hedge funds last month sued Icahn and his Ichan Enterprises, seeking to derail the latter’s $2 billion debt sale plan.

Q alleged that Icahn Enterprises, which is controlled by Icahn’s hedge fund, Icahn Associates, misled potential investors about its stake in auto parts supplier Federal-Mogul Corp. But Icahn has an allegation of his own: Q and Raynor filed the lawsuit despite knowing it, and a companion filing with the Securities and Exchange Commission, was “false and frivolous.”

“As if the twin filings of the 13D and lawsuit were not egregious enough, to date, defendants have never served the lawsuit, despite the willingness to accept service of the lawsuit,” Icahn’s countersuit alleges. “This is no surprise since defendants filed the lawsuit and the 13D, not for the purpose of protecting their financial interest, but as a vindictive and malicious attempt to wreak economic harm on plaintiffs and damage their business reputations, especially Icahn at the exact critical time that plaintiffs were pricing the $2 billion bond offering.”

Icahn is seeking more than $100 million in damages for Raynor’s “hoax” lawsuit and “illegal reason” for filing it.

“It was to sabotage the IEP $2 billion bond offering and hope to extort a payment for withdrawing their false allegations,” the lawsuit alleged, accusing Raynor and Q, as well as several other Raynor-controlled entities, of tortious interference, injurious falsehood and abuse of process.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Expert Says Scale Of Baillon Classic Car Find Rare

Dec 29 2014 | 3:40am ET

Forget about hedge funds, buying rare, classic cars could be called the ultimate...

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.