x
4G/3G/WiFi

Report: LightSquared Fund Sued by Investors

The hits keep coming in this hell week for coulda-woulda-been 4G contender LightSquared .

The Wall Street Journal reported late Friday that investors are now suing billionaire Philip Falcone and his Harbinger Capital Partners LP fund, which bankrolled LightSquared for billions of dollars. The suit, which was filed in the Southern District of New York, alleges Mr. Falcone made "deceptive and misleading statements" by not disclosing that he intended to form the wholesale wireless operator, the paper reports.

Earlier this week, the Federal Communications Commission (FCC) said it would block the company's proposed Long Term Evolution (LTE) network because it would interfere with satellite positioning services. LightSquared's CEO Sanjiv Ahuja said Thursday that the company has already spent "nearly $4 billion" in its attempt to get the abortive hybrid satellite and terrestrial LTE service off the ground.

Why this matters
LightSquared's investors have sunk billions into a network that never got past the conditional waiver stage from the FCC. A major lawsuit, meanwhile, could potentially hamper any possible spectrum swap deal that Falcone may try to pull off.

For more
Track LightSquared's flame-out across the year:



— Dan Jones, Site Editor, Light Reading Mobile

joset01 12/5/2012 | 5:42:11 PM
re: Report: LightSquared Fund Sued by Investors

You might ask *that* question about 50% of the lawsuits in the tech industry and that's a conservative guesstimate.

joset01 12/5/2012 | 5:42:11 PM
re: Report: LightSquared Fund Sued by Investors

Investors in a fund though -- not shareholders -- Harbinger put around $3B into LightSquared. That's not chump change if it's all up in smoke.

Pete Baldwin 12/5/2012 | 5:42:11 PM
re: Report: LightSquared Fund Sued by Investors

I can't help but think of the shareholder lawsuits that come around every time a public company's stock goes down.  Lawyers find one guy who owns like 2 shares and make him the 'lead plaintiff,' hoping to get class-action status...


Harbinger would have fewer, and more serious, investors, so I suppose this lawsuit isn't so frivolous.  Still... can't help drawing a comparison in my mind.

Pete Baldwin 12/5/2012 | 5:42:11 PM
re: Report: LightSquared Fund Sued by Investors

Oh sure, I understand. And I'd expect shareholders to be mad, and they've got a right to be. But I can't help wondering what % of this lawsuit's origin was just lawyers waiting for the chance to jump.

HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE