LightSquared Looks to Lawyers

Philip Falcone, the money manager who has staked his hedge fund on wireless network start-up LightSquared, has hired lawyers to map out a strategy to overcome the Federal Communications Commission's decision blocking the network's launch.

Hedge funds that own some of LightSquared's $1.6 billion of loans have also sought advice on possible litigation. The lawyers are investigating the merits of a potential suit against the Federal Communications Commission, which this week rejected LightSquared's plan for a broadband network, and the Global Positioning System industry. GPS companies and Defense Department officials have argued that LightSquared's signal could interfere with their networks.