Charles Ergen knew that his relationship to Dish Network Corp. and EchoStar Corp. made it improper for him to buy up LightSquared Inc.’s debt, according to new allegations in a lawsuit filed against him, Bloomberg News reported yesterday. Philip Falcone’s Harbinger Capital Partners hedge fund made the claims yesterday in an amended complaint in bankruptcy court. Ergen first looked into whether Dish could acquire LightSquared debt in the fall of 2011, and an investigation then concluded that Dish was prohibited from buying LightSquared debt because it was a competitor, according to the complaint.
