Icahn Enterprises (NASDAQ: IEP) reported disappointing earnings and slashed its dividend as the fallout continues from a short-seller attack earlier this year. Investors are running for the exits, sending shares of Icahn Enterprises down as much as 37% at the open Friday.

Famed activist investor Carl Icahn is usually the one pushing for change at a company, but a May Hindenburg Research report critical of Icahn Enterprises has had real ramifications for the stock. Hindenburg, a prominent short-seller, called Icahn Enterprises "substantially overvalued" and accused the company of relying on a "Ponzi-like" structure to fund its dividend.

On Friday morning, Icahn Enterprises reported a second-quarter loss of $0.72 per share on sales of $2.68 billion, down from a loss of $0.41 per share on revenue of $3.8 billion a year ago. The company also declared a dividend of $1 per share, down from the previous $2-per-share payout.

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Source Fool.com