Breaking Defense by Theresa Hitchens 10/13/2023
The lawsuit is the latest in a decade-spanning battle between Ligado and opponents in government. Ligado Networks today sued the federal government of $39 billion, alleging that officials at the Departments of Defense and Commerce took “unlawful actions” to, in effect, improperly seize without compensation the firm’s L-band spectrum granted by the Federal Communications Commission in 2020 over department objections.
“The lawsuit, filed in the U.S. Court of Federal Claims against the United States, the Defense Department, the Commerce Department and NTIA, seeks just compensation for the government’s physical, categorical, regulatory and legislative takings of Ligado’s property,” the company said in a press release.
First reported by the Wall Street Journal, the legal action is the latest move in what has been a decades-long saga involving bankruptcies, corporate restructuring, allegations of malfeasance, a plethora of suits and countersuits, government-company duels over the results of scientific studies, and high-level congressional politics.
The current episode of the drama dates to the controversial 2020 FCC decision that one source with ties to the case described as a “rezoning” of spectrum allocated to satellite users for a planned 5G terrestrial cell phone network — overriding concerns from DoD, Commerce, and other federal entities that Ligado’s plans would interfere with GPS receivers.
It also comes as Ligado faces the prospects of defaulting on some $4 billion in loans and bonds that come due next month, telecommunications industry analyst Tim Farrar, of Telecom, Media and Finance Associates, told Breaking Defense.
“The debt holders have got to decide whether to give them an extension or whether to put them into bankruptcy, and I guess there’s definitely different considerations that come into play there. Like, for example, bankruptcy is a quite an expensive proposition,” he said.
More:
https://breakingdefense.com/2023/10/ligado-sues-dod-commerce-for-39b-in-long-running-spectrum-saga/