Lightsquared and their planned LTE network is dead
, and all that's left after the long, noisy saga is a few bickering billionaires. Phillip Falcone's Harbringer Capital Partners filed a $4 billion lawsuit
(pdf) this week against Dish Network, claiming the company engaged in a complex fraudulent scheme to become LightSquared's biggest lender, purge Falcone, and acquire the company's spectrum holdings.
Falcone's complaint specifically claims that Ergen and Dish used a specially created investment management firm named Sound Point Capital to acquire the biggest holding of LightSquared loans, though credit agreements prohibited competitors from acquiring such loans.
"I personally followed all of the rules," Ergen is quoted as saying by the Wall Street Journal
. "I will certainly personally put my track record and what I've done, and I will put the light on that. I'll put the light on Dish and we will put the light on Harbinger and Mr. Falcone, and we'll let the courts and public opinion decide who is fraudulent and who's not."
Ergen is seen as a bit of a viper in the industry with a history of being a miserable boss
. Falcone made his name and fortune betting against subprime mortgages ahead of the real estate crash, and is currently facing SEC securities fraud charges
. As such, it's not really clear if anybody cares who wins, and surely there's more than a few people who wish both could lose.