Joanna Rees-Gallanter and John Hamm, two partners of venture capital firm VSP Capital, sued former VSP partners Matt Crisp and Vince Vannelli in California state court claiming breach of fiduciary duty, constructive fraud and misrepresentation. The allegations are related to the discontinuation of VSP's third fund by limited partners in May, said Julia Chang, VSP spokeswoman. The fund had raised $185 million, and investors included Adams Street Partners; Duke Management Co, which handles the $4.6 billion endowment of Duke University, Durham, N.C.; and the $62 billion pension and endowment funds of the University of California, Oakland.
Messrs. Crisp and Vannelli have not yet filed a response; neither could be reached for comment by press time.