there is a chance that the primary purpose of this lawsuit is for the fund to be able to address the concerns of their LPs. in other words, it could be more about optics and less about actually recouping losses.

As in -- "trust us investors, look we are going after a failed company to try to recoup the investment we convinced you to make in us and them" -- that doesn't seem like great optics unless they have some possible chance of recouping cash ...

I think it's about being able to say "we weren't idiots who couldn't figure out if it was a good investment, we were straight up lied to".

Unfortunately the key skill in being an investor like this is to be able to make the right decisions in the face of being lied to. In other words, being lied to simply isn't an excuse.

If anything, I believe that the outcome is a private out of court settlement agreement, terms of which are not disclosed.