I skimmed the suit itself [1] - apparently Calm put on some events together with a PE fund in a joint venture, then a guy left the PE fund... and Calm and the exited person continued to put on events under the same name while preventing the PE from participating. The PE then sued them since they feel entitled since they co-created the event.

I'm sure there's more to the story, this is just from the suit itself (so obviously from the POV of the plaintiff).

But ya, the impact of a PE lawsuit on a very small startup fund that's already trying something new/risky is going to be disastrous for their morale and future plans.

No VC fund wants to be sued, I imagine, but for the one that has a razor-thin business model and no expectations of a big exit for 10+ years I imagine the suit is a high-probability death-blow regardless of right and wrong.

[1] https://drive.google.com/file/d/1fauBdZ3Zm5m4VC9YQdyvDiIkllC...