Millennium Partners, a US-based investment firm with $3bn (€3.4bn) of funds, is suing meVC, a private equity fund, in the second of what may be a tide of legal cases to strike the private equity industry worldwide.

The industry has already been rocked by the State of Connecticut suing Forstmann Little, the buy-out firm, for putting more than 40% of Connecticut's committed capital into a single investment, which subsequently folded.