A federal appeals court on Monday upheld a decision rejecting claims of fraud by Harbinger Capital Partners, the equity owner of bankrupt wireless venture LightSquared, against Deere & Co. and other GPS firms, Reuters reported yesterday. Hedge fund Harbinger had accused Deere, Garmin International, Trimble Navigation Ltd., and a GPS industry group of misleading LightSquared about interference concerns and hastening the wireless spectrum's plunge into bankruptcy. But the U.S. Court of Appeals for the Second Circuit affirmed a ruling by the Manhattan federal court in February, saying that Harbinger's arguments were "without merit." LightSquared has separately brought claims against the parties, which are currently being litigated in the Southern District of New York. While the Second Circuit’s decision is a blow for Harbinger, it comes just three days after the Federal Communications Commission (FCC) approved LightSquared's request to transfer its valuable wireless spectrum into a newly-formed company.
