Icahn Must Face Suit Alleging Manipulation of CVR Buyout Price

Billionaire activist investor Carl Icahn and several of his companies can’t dodge claims they conspired to drive down the market value of CVR Refining LP before exercising their buyout rights, a Delaware judge ruled Friday.

The lawsuit accuses Icahn, Icahn Enterprises LP, and several affiliates of using their control over CVR’s general partner to implement the “multi-step scheme.” It was filed in the Chancery Court by former minority holders of CVR equity units.

The scheme involved a series of transactions, including a tender offer, aimed at letting the Icahn companies hit the ownership threshold that would trigger their call rights, ...