Harbinger Investors Sue Fund, Falcone Over LightSquared Loss

Law360, New York (February 17, 2012, 7:57 PM EST) -- An investor launched a putative class action against Philip Falcone and his hedge fund Harbinger Capital Partners LLC on Friday, claiming they misled investors by sinking $3 billion into wireless network startup LightSquared Inc., whose conditional operating license was yanked by federal regulators Tuesday.

The suit claims that Harbinger and Falcone never told investors that they would operate and invest heavily in LightSquared — nearly 60 percent of the entire fund — saying in the fund's offering materials that they would pursue an investment strategy involving...
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