Kickstarter backers are not investors. They don't own any part of the business they are funding. They are essentially buying pre-orders. I would assume that genuine attempts to use the money to produce the pre-sold product should be protected from litigation, but if the Kickstarter owner goes out and parties with it instead, that is fraud. Not saying that happened in this case, but it's up to the plaintiff and defense to prove whether they used the funds appropriately or not.