Philip Falcone’s hedge fund said it was defrauded by Apollo Global Management LLC into pouring $2 billion into the ill-fated wireless venture formerly known as LightSquared Inc., WSJ Pro Bankruptcy reported. Falcone’s Harbinger Capital Partners filed a lawsuit in New York state court on Thursday accusing Apollo of concealing flaws in a planned telecommunications network that ran into regulatory roadblocks years later, driving LightSquared into a costly bankruptcy. In the lawsuit, Harbinger claimed to have found evidence from U.S. patent archives showing that Apollo’s directors “knew, or were reckless in not knowing” about a set of 2001 test results casting doubt on the wireless network technology.
