Ozy Media’s audience was mostly a mirage. Even in scandal, founder Carlos Watson is looking for opportunity.

On Monday, fund administration firm LifeLine Legacy Holdings filed a lawsuit in opposition to Ozy Media in California, claiming that it was misled when it made an preliminary $2 million funding within the firm earlier this yr. The fund had relied, it stated, on “direct assurances regarding Ozy Media’s sturdy enterprise efficiency, investments by excessive profile institutional traders, excessive viewer metrics, and competent and trustworthy firm administration” to really feel assured within the funding. Within the go well with, the fund demanded its a refund, along with compensation for “punitive damages.”