Skip to content

Icahn Sues Mortgage Collector for Being Slow to Sell Vegas Mall

  • The billionaire investor is famously short malls via CMBX 6
  • Suit claims misconduct led to Vegas mall’s 120% loss last year
Carl Icahn

Carl Icahn

Photographer: Victor J. Blue/Bloomberg

Updated on

Carl Icahn is suing a mortgage payment collector for being too slow to liquidate a struggling Nevada mall, a delay that boosted fee payments to the collector while hurting lenders to the shopping center. 

The delays in recognizing the mall’s troubles and writing down its debt are too common among mortgage payment collectors known as special servicers, according to Icahn Partners’s suit in Nevada state court. The shopping center in question, the Prizm Outlets outside Las Vegas, had loans that had been bundled into bonds through a trust.