Warren Presses DOD Deputy Nominee Feinberg to Recuse on Ligado-Related Matters
Senate Armed Services Committee member Sen. Elizabeth Warren, D-Mass., on Sunday urged deputy defense secretary nominee Stephen Feinberg to recuse himself from all DOD interactions involving Ligado amid the company’s L-band lawsuit against the department. Feinberg’s Cerberus Capital Management holds a 14% stake in Ligado, which alleges that DOD is infringing on its L-band spectrum rights and manufactured concerns about possible interference with GPS as a cover-up (see 2310130004). The U.S. Court of Federal Claims in late February granted a U.S. request for an interlocutory appeal of the court's November decision to partially reject the U.S.'s motion to dismiss Ligado's litigation (see 2502280040).
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
“This ongoing lawsuit and your prior investments in Ligado compromise your ability to weigh in on these matters without a real or perceived conflict of interest,” Warren said in a letter to Feinberg. “As the second-in-command at the Pentagon, you would have the power to influence the DoD’s posture towards the Ligado lawsuit.” If the government “loses or settles the case, Cerberus could profit as it ‘would most likely receive some portion of the settlement proceeds,’ according to your responses to my questions for the record,” she said. “This is a clear conflict of interest, as you could deal your former company -- and your adult children -- a multi-billion-dollar windfall at the expense of American taxpayers.”
Warren asked Feinberg to commit to recusing himself on Ligado-related matters if confirmed and divest any holdings in the company if he takes office. She also asked him about Ligado’s litigation, including how much money would have to be involved in a settlement for Cerberus to “break even on its investment.” Ligado didn’t immediately comment.