Battered by Hindenburg allegations, Icahn's shares fall 20% in a single day

Trouble seems to be brewing for Icahn Enterprises, the latest target of US-based short seller Hindenburg Research.

Its shares fell 20 percent on Wednesday after the company disclosed that the US authorities had sought critical financial information. Icahn Enterprises' stock fell 20 percent to 30.36 dollars per share, pushing its market value down to about$11 billion.

However, the company said it is cooperating with the authorities and expressed confidence that it would come out clean.

"We believe that we maintain a strong compliance program and, while no assurances can be made and we are still evaluating the matter, we do not currently believe this inquiry will have a material impact on our business, financial condition, results of operations or cash flows," the company said in a statement.

The latest development comes just days after Hindenburg's Researchaccused Icahn Enterprises of a number of irregularities.

On May 2, the Nathan Anderson-led firm had accused Icahn of inflating its market valuation by 75 percent or more. The US short seller noted that the company trades at a premium of more than 200 percent to its Net Asset Value (NAV). The short seller accused Icahn of overstating the market value of its holdings in other companies. It also alleged that Icahn relies on a "Ponzi-like" structure to pay dividends.

The accusation did a major damage to Icahn's market value. Icahn's shares hit an intraday low of $31.78 - their lowest in more than a decade - on May 3. The company's founder, prominent investor-activist Carl Icahn, lost $7.5 billion in just a single day.

But, Icahn reiterated that it stands behind the fundamentals of its business. “We have full confidence in the integrity of our presented financials and our reporting," CEO David Willetts said.

The company is expected to respond to Hindenburg's allegations on Thursday.