Beleaguered Satellite Firm Ligado Networks Sues US for $39B in Spectrum Rights Dispute

Ligado Networks filed a lawsuit against the U.S. government, alleging that the Defense Department and Commerce Department obstructed its business plans with a calculated disinformation campaign. 

The long-struggling satellite company seeks compensation of up to $39 billion for the spectrum rights it claims were unjustly denied. 

This legal action comes amid the looming threat of $4 billion in November bond payments, as Ligado has been navigating financial instability while striving to secure its spectrum rights.

The heart of the matter revolves around Ligado's contention that the Pentagon and Commerce Department used a false pretext to deny the company the wireless spectrum licenses that should have been commercially available, the Wall Street Journal noted. 

Federal officials at both departments have consistently argued that Ligado's planned fifth-generation wireless signals could disrupt the Global Positioning System (GPS) functionality.

Ligado's lawsuit further alleges that the Pentagon took control of Ligado's spectrum in the L-band without disclosing alternative purposes to other regulators or Congress. 

The Pentagon frequently uses this frequency range for classified weapons and communication programs, rendering it unavailable for civilian use.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.