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Carl Icahn Settles Xerox-HP Merger Suit Including Novel Trading Claim for a Big $2.2M
In a landmark decision, investor Carl Icahn has reached a $2.2 million settlement with a Florida firefighters pension fund, concluding a protracted legal battle over an alleged insider trading claim linked to the proposed merger between Xerox Corp. and HP Inc.The pension fund, representing the interests of the state’s firefighters, had sought to claim the theoretical gains the investor could have realized from the stock of HP Inc. This case presented a unique legal theory, pitting the potential profits against the actual losses incurred by the investor on the shares, which became a central element of the defense.
The settlement marks the end of a five-year derivative lawsuit that revolved around the investor’s supposed “paper profits” from the failed acquisition attempt by Xerox Corp. The agreement to dismiss the securities claim signifies a significant resolution in a case that has been closely watched for its novel approach to securities litigation.
This case has set a precedent in the realm of securities law, highlighting the complexities of insider trading allegations and the defense strategies that can emerge when theoretical profits are weighed against actual financial outcomes. The $2.2 million settlement serves as a reminder of the intricate interplay between corporate maneuvers and shareholder interests.
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