Icahn Settles Xerox-HP Merger Suit Including Novel Trading Claim

A Florida firefighters pension fund has agreed to set aside its novel securities claim against Carl Icahn in exchange for a $2.2 million settlement, ending a five-year derivative suit in which the fund hoped to collect Icahn’s “paper profits” connected to an attempted Xerox Corp. takeover of HP Inc.

If finalized, the deal extinguishes what the plaintiffs described as a potential “eight-figure” case against Icahn for allegedly using insider information to purchase shares in HP ahead of Xerox announcing its failed takeover bid of the computer company.

The pension fund presented a novel theory for New York arguing that Icahn ...