NEW YORK, Dec. 13, 2011 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com/">http://www.nasd-law.com) announced today that it is investigating potential claims on behalf of investors of Harbinger Capital, a hedge fund managed by Philip Falcone. It was recently revealed that the SEC sent Falcone, his firm and two associates Wells Notices, stating that it intends to recommend or is considering recommending that the SEC file civil actions against them. The SEC's investigation into Harbinger focuses in part on a loan of over $100 million that one of the Harbinger funds made to Falcone in 2009. Allegedly, Falcone took this loan to help pay taxes without notifying investors. Further, the SEC is looking into whether some Harbinger investors received preferential treatment over others. The Wells Notices reportedly discuss issues relating to whether Harbinger allowed some clients, including Goldman Sachs, to withdraw money while at the same time barring others.
In addition to facing possible action from the SEC, Harbinger Capital's assets have declined substantially in recent years. Just three years ago, the fund had assets of $26 billion. Today the fund is said have assets of just $5.7 billion. Further, the fund's significant investment in LightSquared, LP may be running into trouble, and the wireless technology company faces regulatory problems. Harbinger has stated that it "anticipates" withdrawals from its main hedge fund will be suspended effective December 30, 2011.
Harbinger Capital investors can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered significant investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or are a Harbinger Capital investor, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com