Carl Icahn said on Monday he was pleased a federal judge dismissed a lawsuit accusing the billionaire of defrauding shareholders of his investment company Icahn Enterprises so he could obtain large amounts of personal loans.

Activist shareholder and billionaire Carl Icahn was taking somewhat of a victory lap Monday, after a judge dismissed a proposed class-action lawsuit against his company, finding it did not make material misrepresentations or omissions as alleged in a report by short seller Hindenburg Research.

Shares of Icahn Enterprises (IEP) are rising after a US district court dismissed a class action lawsuit that accused founder and chairman Carl Icahn and the company of defrauding shareholders. The suit referenced a Hindenburg Research report from 2023 that accused Icahn of overseeing a "Ponzi-like economic structure" through inflating share prices and paying out excessive dividends.

Carl Icahn's investment company Icahn Enterprises won the dismissal of a lawsuit claiming it artificially inflated its share price by issuing unsustainably high dividends to help the billionaire investor obtain large amounts of personal loans.

The lawsuit's allegations were tied to a short-seller's report that accused the company of overstating the value of its private asset portfolio.

Icahn Enterprises said a judge dismissed a proposed class-action lawsuit against the company and some of its directors.

A U.S. District Judge dismissed a lawsuit against Icahn Enterprises, which claimed the company artificially inflated its stock by issuing high dividends to support Icahn’s personal loans. Judge K. Michael Moore ruled that the shareholders failed to prove misrepresentation or intent to defraud.