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.