Federal Court Repeatedly Validates TSVC’s Claims Against Foothill Ventures, Rejects Attempts to Use Prior Arbitration to Avoid Liability for False Advertising

LOS ALTOS, Calif.--(BUSINESS WIRE)--TSVC (formerly TEEC Angel Fund), a leading Silicon Valley venture capital firm, has secured a series of pivotal federal court victories in its ongoing false advertising lawsuit against Foothill Ventures. This lawsuit, an escalation of a dispute originating in April 2021 when current Foothill partners instigated a conflict over fund management by filing a lawsuit in Delaware Chancery Court (ultimately resulting in a private arbitration between individual partners), centers on allegations that Foothill—founded by former TSVC affiliates—has repeatedly misrepresented itself across the U.S. and China as a successor to the original TEEC Angel Fund. In doing so, Foothill has unlawfully claimed credit for TSVC's historic investment track record, including its highly publicized, exclusive seed-stage investment in Zoom and its premier seed-to-unicorn conversions.

Most recently, in an order dated June 11, 2026, the Court handed TSVC a major victory. In its third attempt to throw out the case, Foothill argued that TSVC's complaints regarding Foothill's ongoing misrepresentations were brought too late and should be disqualified due to the passage of time.

The Court soundly rejected Foothill's arguments, preserving TSVC’s core federal false advertising claims. The Court ruled that Foothill failed to meet the required legal showing to dismiss the case based on time elapsed. Furthermore, the Court validated that TSVC successfully met strict legal standards for fraud claims, noting that the complaint "alleges specific statements each Defendant made that were misleading and explains why they were misleading".

Prior to this, on February 27, 2026, the Court addressed Foothill's technical and procedural arguments regarding pleading formats, allowing TSVC the opportunity to refine its complaint to move forward.

In an earlier court ruling on August 13, 2025, the Court unequivocally denied Foothill’s previous attempt to dismiss the lawsuit based on the prior arbitration. The Judge ruled that the prior individual arbitration rulings do not bar TSVC's corporate false advertising claims, soundly denying Foothill's motion. This definitive ruling prevented Foothill from using the arbitration as an early shield to dispose of TSVC's claims.

With these consecutive rulings securing the case's advancement, the lawsuit will soon enter the discovery phase. TSVC is highly confident in its legal position and looks forward to uncovering further internal evidence of Foothill's deceptive marketing practices. TSVC remains committed to holding competitors accountable for unlawful behavior and protecting the integrity of the venture capital ecosystem.

The case is TEEC Angel Management, LLC, et al. v. Tsingyuan Ventures LLC, et al., United States District Court for the Northern District of California, Case No. 5:24-cv-08991-EKL.

For additional information, including a list of publicly available court orders, evidence, and FAQs, please visit: www.teec-angel.com/litigation/.