NEW YORK, Dec. 28, 2010 /PRNewswire/ -- Harbinger Capital Partners today announced that it has joined forces again with the Le-Nature's Liquidation Trust. Le-Nature's Inc. was a bottling company that collapsed after an extensive fraudulent scheme was uncovered. The Trust was formed under Le-Nature's bankruptcy liquidation plan, in part to pursue fraud related claims against several third parties, including Wachovia Securities.
The Trust has an action against Wachovia resulting from Wachovia's long-term involvement in the Le-Nature's scheme pending in the federal district court in Pennsylvania. A Harbinger affiliated fund is the lead plaintiff in a separate action against Wachovia and other third parties pending in New York state court related to the same scheme.
As part of this arrangement, a Harbinger affiliated fund is financing up to an additional $8 million of the Trust's operating expenses that the Trust may use to pursue the Trust's claims.
"These actions will enable the Harbinger litigation group and the Trust to maximize potential recoveries against Wachovia and other third parties," said Philip Falcone, Chief Executive Officer and Chief Investment Officer of Harbinger.
The Harbinger New York State lawsuit seeks damages against Wachovia and other third parties in excess of $182 million. The Trust is seeking damages in excess of $450 million against Wachovia and other third parties.
About Harbinger Capital Partners LLC
Harbinger Capital Partners LLC is a leading private investment fund based in New York. The firm was founded in 2001 and employs a fundamental approach to deep value and distressed credit investing.
SOURCE Harbinger Capital Partners LLC