Apollo ‘Fraud’ Led to $2 Billion Loss, Harbinger Claims in Suit

Philip Falcone’s Harbinger Capital LLC still wants its money back for the imbroglio that was LightSquared Inc., and it is now targeting Apollo Global Management LLC, the firm that originally sold it the investment.

Apollo deceived Harbinger into buying the telecommunications company by hiding test results from 2001 that would have revealed the company’s fatal flaw: its signals interfered with GPS devices, according to a lawsuit. The complaint, filed in New York State Supreme Court Dec. 21, seeks to recoup Harbinger’s almost $2 billion investment, alleging a “massive fraud” by Apollo and its partners who sat on the board back ...