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The team winding down the remnants of Lehman Brothers Holdings Inc. has reached a far-ranging settlement resolving Fannie Mae’s $18.9 billion claim stemming from mortgage loans and mortgage-backed securities the failed investment bank sold to Fannie Mae before the financial crisis.

Hedge-fund manager Philip Falcone, whose Harbinger Capital Partners holds a majority stake in LightSquared, testified Thursday that he didn’t know Dish Network Corp. Chairman Charles Ergen was behind a series of LightSquared debt purchases that are at the heart of an ongoing trial.

Hedge-fund manager Stephen Ketchum on Wednesday said he couldn’t recall if Dish Network Corp. Chairman Charlie Ergen wanted to acquire a powerful “blocking” position in LightSquared ’s debt even though evidence presented to him suggested he knew that Mr. Ergen did. Read the Daily Bankruptcy Review article here.

Prosecutors and defense lawyers, by the nature of their jobs, don’t often find themselves on the same side.