Carl Icahn’s lawsuit seeking at least $100 million from Texas hedge-fund promoter Geoffrey Raynor, his R2 Investments LDC and others was dismissed by a New York state judge.
In the suit, filed in February 2010, Icahn said Raynor interfered with a $2 billion bond offering by Icahn Enterprises LP and other Icahn companies. Justice Eileen Bransten in Manhattan today dismissed the case, which included claims of tortious interference with contract, libel and abuse of process.
Raynor and Icahn formed a partnership in 2001 to acquire debt securities issued by Federal Mogul Corp., which was in bankruptcy at the time, Bransten said in her decision. After a dispute over the right to purchase some Federal Mogul stock, Raynor made a securities filing in January 2010 disclosing a suit commenced the same day by Raynor-affiliated Nineteen Eighty-Nine LLC seeking to impose a “constructive trust” on the shares, Bransten said.
Icahn, 75, said the timing of the regulatory filing and suit lowered demand for the bond offering. He sued Raynor, R2, Nineteen Eighty-Nine and five other defendants.
Raynor and Icahn are embroiled in other suits in New York state court over the stock options in Federal Mogul, an auto- parts supplier, according to the decision.
A message left with Icahn’s secretary wasn’t immediately returned. A message left with attorneys for Raynor also wasn’t immediately returned.
The case is Icahn v. Raynor, 150040/2010, New York state Supreme Court (Manhattan).
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