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Harbinger’s Falcone wasted assets, investor says in lawsuit

The new director positions, filled by Leucadia designees, give public shareholders less of a voice on Harbingers direction and amount to a misuse of corporate assets, the Massachusetts-based pension fund said in yesterdays complaint.

By Jef Feeley | Updated on March 27, 2014

March 27 (Bloomberg) — Harbinger Group Inc. founder Philip Falcone wasted corporate assets in a bid to keep control of the investment firm after agreeing to a five-year ban on working in the securities industry, an investor contends in a lawsuit.

Falcone, whose hedge funds faced a wave of redemption requests after he accepted the ban as part of a settlement with the U.S. Securities and Exchange Commission, added two board seats to help secure a cash infusion of more than $400 million from Leucadia National Corp., according to a complaint by Haverhill Retirement System, a Harbinger shareholder, filed yesterday in Delaware Chancery Court.

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