Falcone has apparently offered to pay Howard Kagan, his ex-partner and CIO, half of the $63 million if he agreed not to sue….
So far, Harbinger has offered to pay Kagan half of what he says he’s owed on the condition he agree not to sue the fund….
Kagan claims he’s not getting his dough because Harbinger is saddled with bad bets due to the recession. Harbinger owns a host of assets that have soured in the recession, including a 20 percent stake in The New York Times.
“This is a disappointing outcome for a former employee who underperformed our expectations. We believe this lawsuit is without merit,” said Harbinger spokesman Charles V. Zehren.
Boss Is Sued In Hedge-Fund Feud – NY Post
5/1/09 Addendum: We heard from Phil Falcone who noted that Kagan wasn’t CIO. Apparently the NY Post later amended their story from the original text above to read “a former Harbinger partner and investment officer”. Here’s a link to our subsequent update.
