March 10, 2025

Ahead of Confirmation Vote, Warren Urges Deputy Defense Secretary Nominee to Cut Ties to Company Suing the Pentagon for Billions

Feinberg could influence DoD response to Ligado’s $39 billion lawsuit, benefitting his family

Text of Letter (PDF)

Washington, D.C. – U.S. Senator Elizabeth Warren (D-Mass.) wrote to Deputy Defense Secretary Nominee Stephen Feinberg, urging him to recuse himself from all matters related to Ligado Networks. Mr. Feinberg’s private equity firm, Cerberus Capital Management, is heavily invested in Ligado, which has a pending $39 billion lawsuit against the Department of Defense (DoD) over highly sought-after telecommunications spectrum space that the military has said is “essential for its various satellite communications, radars and navigation systems” usage. 

Ligado is a mobile communications company that operates a satellite network and has been providing mobile satellite services to government and commercial customers for over 25 years. Cerberus is a major stakeholder in the company, holding an estimated $3.3 billion stake in Ligado. Ligado’s business model heavily depends on “its exclusive [Federal Communications Commission] license” granting it access to in-demand space on the electromagnetic spectrum, essential for satellite communications, radars, and navigation systems. DoD objected to the license, claiming that Ligado’s use would cause “interference that would have a crippling effect on critical warfighting missions” and would “dangerously interfere with GPS signals widely used by the military, commercial aviation and myriad other industries.” In 2023, Ligado sued DoD and other agencies for $39 billion for damages to the company’s business model. 

In his ethics agreement, Mr. Feinberg committed to resigning his role at Cerberus and to divest his holdings in Cerberus, which he could put in a trust “for the benefit of (his) adult children.” He also committed to consulting with an agency ethics official about his potential conflicts of interest and “take the measures necessary to resolve the conflict.” In response to pressure from Senator Warren, Mr. Feinberg committed to setting up a screening process to implement his recusals. 

As second-in-command at the Pentagon, Mr. Feinberg would have the power to influence DoD’s posture towards the Ligado lawsuit. During the first Trump administration, then-Deputy Secretary of Defense David Norquist made “an in-person, classified case for why the Defense Department believes the commission’s approval of Ligado Networks spectrum plan will cause major harm to the Global Positioning System.” In response to Senator Warren’s questions for the record, Mr. Feinberg admitted that if the government loses or settles the case, Cerberus could profit as it “would most likely receive some portion of the settlement proceeds.” 

“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,” wrote Senator Warren. 

Senator Warren urged Mr. Feinberg to amend his ethics agreement to recuse himself from matters related to Ligado and its lawsuit with DoD. She also requested clarity from Mr. Feinberg on his ties to Ligado through Cerberus and Cerberus’ potential profits if the case is settled or won by Ligado. 

Senator Warren has sought to protect servicemembers and national security by pushing defense nominees to resolve their conflicts of interest: 

  • In March 2025, Senator Elizabeth Warren wrote to Mr. Emil Michael, nominee for Under Secretary of Defense for Research and Engineering, with concern over his history of inappropriate behavior at work, his attacks on journalists and public accountability, and his ties to technology companies that may seek contracts with the Department of Defense. 
  • In February 2025, ahead of his confirmation hearing before the Senate Armed Services Committee, Senator Elizabeth Warren wrote to Mr. Stephen Feinberg, nominee for Deputy Secretary of the Department of Defense, pressing him to explain his “serious conflicts of interest” and his track record of mismanagement.
  • In January 2025, Senator Elizabeth Warren wrote to Mr. Michael Duffey, nominee for Under Secretary of Defense for Acquisition and Sustainment of the Department of Defense, ahead of his confirmation hearing, with serious concerns about his record, which include violating the law, disregarding Congressional authority, and his involvement in Project 2025. 
  • In January 2025, Senator Elizabeth Warren wrote to Mr. Pete Hegseth, nominee for Secretary of the Department of Defense, regarding his ethics conflicts ahead of the Senate’s consideration of his nomination. Mr. Hegseth’s household’s ownership of stock in several defense contractors and his unwillingness to commit to post-employment restrictions he previously advocated for at his confirmation hearing were particularly troubling for the role of Secretary of Defense.
  • In March 2024, Senator Elizabeth Warren secured ethics commitments from Douglas Schmidt, ahead of his confirmation to be the Director of Operational Test and Evaluation (DOT&E) for the Department of Defense.
  • In June 2023, Senator Elizabeth Warren and representative Andy Kim reintroduced the Department of Defense Ethics and Anti-Corruption Act, to limit the influence of contractors on the military, constrain foreign influence on retired senior military officers, and assert greater transparency over contractors and their interaction with DoD.
  • In July 2021, Senator Elizabeth Warren secured agreements to four-year recusals from former clients’ and employers’ party matters from then-Secretary of the Air Force Frank Kendall and then-USD(R&E) Heidi Shyu.
  • In January 2021, Senator Elizabeth Warren secured a commitment from General Lloyd Austin III, then-nominee for Secretary of Defense, to extend his recusal from Raytheon Technologies for four years and to not seek a position on the board of a defense contractor or become a lobbyist after his government service.

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