A group of hedge fund firms is suing over what they say was a conspiracy to hide beverage maker LeNature’s massive debt from shareholders.

Both BlackRock and Harbinger are involved in the suit, which names Wachovia Capital, accounting firm BDO Seidman and former LeNature executives Gregory Podlucky and Robert Lynn as defendants. The suit claims they withheld information about LeNature’s improper practices and struggling finances.

LeNature is currently in bankruptcy and its massive debt could total as high as $1 billion. Wachovia underwrote loans to the company and then sold most of that debt to investors. The bank extended one loan just two weeks before LeNature declared bankruptcy.

Both BlackRock and Harbinger held LeNature debt and stand to lose money in the company’s bankruptcy proceedings. Neither should be seriously harmed, however, as Harbinger has more than $12 billion in assets under management and BlackRock has more than $1 trillion globally.