Harbinger, Falcone Say SEC's Fraud Claims Fail

Law360, New York (December 3, 2012, 4:05 PM EST) -- Harbinger Capital Partners LLC and founder Philip Falcone asked a New York federal court on Friday to dismiss a U.S. Securities and Exchange Commission fraud suit against them, saying the claims fail because the regulator alleges no misrepresentations, omissions or illegal profits.

In a memorandum in support of their motion to dismiss, the defendants say the SEC accuses them of engaging in an illegal “short squeeze,” a form of market manipulation that occurs when a trader restricts the supply of a security with the intention of...
To view the full article, register now.