On Tuesday, a U.S. federal judge dismissed a $1.5 billion suit brought by Philip Falcone against Dish Network and its Chairman Charlie Ergen.
Judge William J. Martinez of the U.S. District Court in Colorado called Falcone’s racketeering lawsuit “frivolous, ” and cited similarities with a lawsuit filed as part of Light Squared’s bankruptcy case, reported the Wall Street Journal.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
Falcone did not respond to requests for comments by the media. A spokesman for Dish Network and Ergen also reportedly declined to comment on the court’s decision.
The judge did not take Falcon’s claim that Dish Network’s Charman Charlie Ergen bought Light Squared’s debt in order to make a low bid for the company seriously.
Last July, Falcone sued both Dish and its Chairman for damages to the tune of $1.5 billion, claiming that the company violated the Racketeer Influenced and Corrupt Organizations Act when it bought the debt of Light Squared.
Ergen maintained that he acted on his own and that Dish Network was not involved in the Light Squared deal. Ergen finally dropped out of the bid to acquire Light Squared, but kept the debt he owned in the company.
Light Squared recently received the court’s approval for its chapter 11 reorganization plan. The plan allows investors Fortress Investment Group LLC, Centerbridge Partners and others to take control of the company. Falcone and Harbinger will maintain 44% of the company’s equity with reduced executive powers.
Light Squared was forced to file chapter 11 after federal regulators refused to approve the plans to launch a wireless network which aimed to provide low-cost mobile services to millions of users within United States. The regulators were of the opinion that Light Squared’s Network could interfere with GPS services.
