Hedge fund Harbinger Capital Partners’ civil racketeering lawsuit against US DTH giant Dish Network and chairman Charlie Ergen has reportedly been thrown out of a Denver court.
It was one of a number of lawsuits borne out of Harbinger and Ergen’s…
Hedge fund Harbinger Capital Partners’ civil racketeering lawsuit against US DTH giant Dish Network and chairman Charlie Ergen has reportedly been thrown out of a Denver court.
It was one of a number of lawsuits borne out of Harbinger and Ergen’s battle for US satellite/terrestrial LTE venture LightSquared, which agreed a restructuring deal last month after three years in Chapter 11 bankruptcy.
Harbinger’s civil racketeering lawsuit had accused Ergen, Dish and their affiliates of using ‘improper tactics’ to try to strip it of control of the venture. It had been seeking at least US$1.5bn in damages.
However, US District Judge William Martinez dismissed it to avoid splitting claims across multiple lawsuits, according to a court report.
He was cited saying that Harbinger could pursue its claims in another forum.
In February, another federal judge dismissed a lawsuit from Harbinger that claimed Garmin and other GPS makers caused LightSquared’s bankruptcy, although Judge Paul Berman said at the time that LightSquared’s similar but separate negligent-misrepresentation and constructive-fraud claims could proceed.
LightSquared filed for voluntary reorganisation under Chapter 11 bankruptcy protection in May 2012, after its frequencies were found to interfere with GPS systems.
The venture’s restructuring saw Harbinger retain more than 44% of the equity but with no say in day-to-day operations. Ergen’s more than US$1bn in debt is being paid in cash, plus interest.
LightSquared has been talking to regulators for a way around the interference concerns and, in April 2015, applied for mobile licences from the FCC.