Philip Falcone's Harbinger Capital Partners LLC has filed a lawsuit against Apollo Global Management LLC, alleging that it led Harbinger to invest almost $2 billion in a venture when Apollo Global knew, but concealed, that the venture's planned telecommunications network had severe material defects that prevented it from being built as planned.
Between 2004 and 2010, relying on what it called Apollo's false material statements, Harbinger purchased the SkyTerra venture's debt and equity. In April 2008, Harbinger agreed to enter into a stock purchase agreement with Apollo to purchase Apollo's entire interest in SkyTerra.
When reached for comment, a spokesman for Apollo said the company believes the suit lacks merit and intends to defend itself.
Harbinger Capital is demanding a jury trial. It is seeking damages of more than $1.9 billion in the suit.