LightSquared Ch. 11 Won't Halt Falcone Fraud Claims

Law360, New York (May 14, 2012, 10:46 PM EDT) -- Harbinger Capital Management LLC head Philip Falcone may have breathed a temporary sigh of relief Monday when his troubled wireless startup LightSquared Inc. filed for bankruptcy protection, but the move won’t save him from fraud claims by angry Harbinger shareholders, experts say.

LightSquared filed for bankruptcy protection in New York federal court after a weekend of tense negotiations with creditors, several of whom demanded that Falcone step down. His prized hedge fund poured $2.9 billion into LightSquared to support its plans to build a nationwide 4G...
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