Investors in the now bankrupt LightSquared which aimed to build a wireless broadband network across the United States are suing those who should have warned them about potential issues leading to the company's failure.
The plaintiffs, including Harbinger Capital argue that Deere & Company, Garmin International and Trimble Navigation, plus the U.S. GPS Industry Council and the Coalition to Save Our GPS are liable for failing to warn them about the problems that have now forced a halt to the project. The goal is to get the defendants to pay for damages.
The filing argues that GPS manufacturers knew of plans to use the frequencies in question for a ground-based network, but did not tell the investors the network would overload receivers, irreparably hampering GPS service. The plaintiffs also argue that GPS manufacturers were effectively designing their devices to improperly use spectrum owned by LightSquared — creating a problem for which there was no practical solution once thousands of legacy GPS receivers were in place. Had they been informed of these problems, the plaintiffs argue, they “never would have incurred these costs, or made their subsequent investments in the new network.”
Jim Kirkland, vice president and general counsel of Trimble, responded: “The lawsuit is lacking in merit and we will vigorously defend it.”
Harbinger sued Dish Network a few days before for acquiring LightSquared debt.