Harbinger Sues GPS Users Over LightSquared Troubles

Aug 12 2013 | 1:33pm ET

Harbinger Capital Partners continued to add defendants as part of its battle to retain control of its wireless Internet venture.

The hedge fund last week sued Dish Network co-founder Charlie Ergen, accusing him of secretly buying up more than half of LightSquared's bank debt in a fraudulent effort to block the company's exit from bankruptcy and to allow himself to buy up LightSquared's share of the magnetic spectrum on the cheap. Now, Harbinger is going after the companies it blames for forcing LightSquared into bankruptcy in the first place: the global-positioning system users it claims have been using its spectrum.

LightSquared's planned nationwide wireless network was blocked by federal regulators concerned about possible interference with GPS. But according to Harbinger, nothing was done about that difficulty because GPS users negotiated with LightSquared in bad faith.

The hedge fund sued Deere & Co., Garmin International, Trimble Navigation, the U.S. GPS Council and the Coalition to Save Our GPS, seeking nearly $2 billion in damages. It alleges that Harbinger spent years trying to resolve its conflicts with the companies, but that the companies hid the fact that their devices were using spectrum owned by LightSquared.


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.