LightSquared Legal Maneuvering Heats Up

LightSquared has filed suit against several GPS manufacturers, claiming the firms withheld their

concerns about interference until LightSquared had already pumped $4 billion into building it. An agent for LightSquared has contacted more than 90 potentially interested parties, seeking alternatives to the $2.22 billion cash offer it has received from the Dish Network Corp. (DISH) for its assets, according to papers filed in a New York City bankruptcy court. A bankruptcy auction is planned for December 6. Dish won dismissal on October 29 of a lawsuit brought by Philip Falcone, founder of LightSquared and its major investor, the hedgefund Harbinger Capital.  Harbinger had sought $4 billion from Dish in the lawsuit, alleging that Dish had tried to strip Falcone of ownership of LightSquared. Meanwhile, another firm, Globalstar, is proposing to convert its satellite spectrum into a broadband application, but is not expected to have the GPS interference issues that made LightSquared so controversial.