Harbinger Investor Suit Over Lightsquared Dismissed by JudgeBob Van Voris
A lawsuit accusing hedge fund manager Philip A. Falcone and his Harbinger Capital Partners of misleading investors about the firm’s stake in LightSquared Inc. was dismissed by a U.S. judge.
U.S. District Judge Alison Nathan in Manhattan today dismissed the remaining counts in the suit, after sharply narrowing it in a ruling in 2013.
The investors claimed Harbinger acquired an interest in LightSquared, formerly known as SkyTerra Communications Inc., without adequately warning them of the risks. Harbinger ultimately owned 60 percent of LightSquared, which was developing a high-speed wireless broadband network before it filed for bankruptcy in 2012.
The case is Schad v. Harbinger Capital Partners LLC, 12-CV-1244, U.S. District Court, Southern District of New York (Manhattan).