I'm an LP in both Calm and the fund, SureSwift, that's suing them, so I suspect I know as much as anyone external. Weirdly, the only information I've been able to glean is from Calm, but I did participate in the events personally that are part of the litigation.

The other fund, SureSwift, had some drama (founding GP left, replaced with a hired CEO who seems entirely competent), and SureSwift shortly after sued Calm and the former GP. I never got a good picture what happened internally, but there certainly was a falling out.

Speaking personally, the lawsuit seems like a giant waste of time and I haven't heard anything that makes me think Calm actually did anything wrong. I've asked, and got very confusing empty responses from SureSwift. I wish I knew more, since I love this space (calm companies, micro PE, etc) and am personally invested on both sides.

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...