A PYMNTS Company

Florida Firefighters’ Pension Fund Settles Lawsuit Against Carl Icahn for $2.2 Million

 |  May 9, 2024

After five years of legal battle, the Florida firefighters’ pension fund has reached a settlement agreement with billionaire investor Carl Icahn, putting an end to a derivative lawsuit centered around alleged insider trading. The fund had pursued Icahn for his purported “paper profits” linked to a failed takeover bid by Xerox Corp. of HP Inc.

Under the terms of the settlement, the pension fund will set aside its unique securities claim against Icahn in exchange for a payment of $2.2 million. This resolution comes as a relief to both parties involved and marks the conclusion of what the plaintiffs had initially anticipated as a potentially “eight-figure” case.

The lawsuit accused Icahn of leveraging insider information to purchase shares in HP prior to the public announcement of Xerox’s unsuccessful bid to acquire the technology giant. By allegedly capitalizing on confidential knowledge, Icahn purportedly amassed significant gains, prompting the Florida firefighters’ pension fund to seek legal recourse on behalf of its members.

Throughout the litigation process, both sides engaged in vigorous legal maneuvers, with the pension fund aiming to hold Icahn accountable for his actions. However, with the settlement now agreed upon, the dispute appears to have found closure, sparing both parties further protracted litigation.

While the settlement amount of $2.2 million represents a fraction of the potential damages initially sought, it signifies a mutual decision to resolve the matter outside of court.