{
  "id": 9113301,
  "title": "Icahn and hedge funds face lawsuit over Endeavor buyout arbitrage",
  "url": "https://urgent.news/2026/09/22/icahn-and-hedge-funds-face-lawsuit-over-endeavor-buyout-arbitrage",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T08:30:46.000Z",
  "source": {
    "name": "Hedgeweek",
    "slug": "hedgeweek",
    "url": "https://www.hedgeweek.com/icahn-and-hedge-funds-face-lawsuit-over-endeavor-buyout-arbitrage/"
  },
  "original_language": "en",
  "account": "Investment firm Carl Icahn and several hedge funds are embroiled in a Delaware lawsuit over their role in the appraisal and merger-arbitrage strategies surrounding Silver Lake's $25bn acquisition of Endeavor Group Holdings, according to Bloomberg. Endeavor and Silver Lake filed a complaint in Delaware on Monday, seeking to halt Icahn's firm from proceeding with its appraisal claim and alleging coordination with other investors, including Pentwater Capital Management and Troluce Capital Advisors. This case underscores the increasing involvement of hedge funds in utilizing Delaware's appraisal process and shareholder litigation to contest private equity-backed takeover terms. Silver Lake acquired Endeavor at $27.50 a share, but numerous investment firms have since initiated appraisal proceedings in Delaware's Court of Chancery, contending that the company's true worth surpassed the consideration stipulated in the deal. The case has emerged as the most substantial appraisal effort of its kind in Delaware. Meanwhile, Icahn Enterprises and a Swedish bank are also pursuing a proposed class action, alleging that Endeavor executives unlawfully breached their fiduciary duties by endorsing a transaction that allegedly disadvantaged minority shareholders. Endeavor and Silver Lake's latest complaint accuses Icahn's firm, Pentwater, and Troluce of collaborating \"for the common purpose of launching a broad litigation offensive targeting the merger\" and claims violations of securities and antitrust laws. Troluce CEO Jared Dubin stated that the firm is evaluating the allegations and intends to persist in pursuing its rights in Delaware, believing the merger consideration significantly undervalued Endeavor's assets. Both Icahn Enterprises and Pentwater have reportedly declined to comment. Moreover, Silver Lake and Endeavor are aiming to prevent investment firms from pursuing appraisal claims based on shares acquired after the buyout announcement. Their legal representatives argue that Delaware's appraisal mechanism was intended to safeguard shareholders who could not prevent a transaction and desired judicial review of the price, rather than transforming it into a tradable litigation opportunity.",
  "summary": "Carl Icahn's investment firm and several hedge funds are facing legal action in Delaware over their involvement in appraisal and merger-arbitrage strategies linked to Silver Lake's $25bn acquisition of Endeavor Group Holdings, according to a report by Bloomberg.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}