A U.S. judge dismissed the bulk of two lawsuits by bankrupt wireless venture LightSquared and equity owner Harbinger Capital Partners accusing Deere & Co and other GPS firms of misleading them about interference concerns and hastening the company's insolvency, Reuters reported yesterday. In an opinion rendered yesterday in Manhattan federal court, U.S. District Judge Richard Berman threw out Harbinger's lawsuit, and nixed nine of 11 claims asserted by LightSquared, serving a blow to its hope for hefty damages that could help salvage its business. LightSquared has been in bankruptcy since 2012, when the Federal Communications Commission revoked its license to build a planned wireless network over fears it could interfere with GPS systems. Harbinger, the hedge fund run by Phil Falcone, would have to give up much of its equity and all of its operational control of LightSquared under a restructuring plan being voted on by creditors. The lawsuits alleged that Deere, Garmin International, Trimble Navigation Ltd., and a GPS industry group led LightSquared to believe the planned network would not pose an interference risk. It wasn't until LightSquared had pumped $4 billion into the project, the plaintiffs argued, that the GPS industry voiced their concerns. Judge Berman dismissed many claims from both plaintiffs, including breach of contract and civil conspiracy, leaving alive only LightSquared's claims for negligent misrepresentation and constructive fraud.
