A state court cleared billionaire Carl Icahn to continue his battle against special servicers for commercialized mortgage-backed securities loans, finding that the activist investor had standing to sue a servicer over its handling of a distressed $73 million mortgage for a Nevada shopping mall.
Judge Mark Denton of the Las Vegas-based District Court in Clark County, Nevada found that two of Icahn’s businesses—Icahn Partners LP and Icahn Partners Master Fund LP—had properly alleged that Rialto Capital Advisors LLC’s handling over the loans had specifically impacted Icahn, which held the majority of one class of bonds.