Icahn Enterprises -4% but insider trading case will be hard to prove

|About: Icahn Enterprises L.P. (IEP)|By:, SA News Editor

Icahn Enterprises (IEP) tumbled 4% in today's trade despite the apparent majority view that regulators could have a hard time proving Carl Icahn violated insider trading laws.

"It's not enough to show that there was material, non-public information divulged," says Columbia securities law professor John Coffee. "You must show that there was a breach of fiduciary duty."

“Carl Icahn is a well-known investor who has made a career of trying to put companies into play like Clorox,” says Richard Holwell, who presided over the Raj Rajaratnam insider trading trial, adding that Icahn disclosed his ownership, "so people would have known... that he was going to make a run” for Clorox.

Authorities reportedly have pored over phone records, seeking trading patterns, but phone records provide only circumstantial leads.