Venture capitalist David Lee has sued former partner Ron Conway for millions of dollars Lee feels is being improperly withheld by Conway, according to a complaint filed last week in Marin County Superior Court.

Why it matters: Lee and Conway co-founded one of Silicon Valley's most prominent seed investing firms, backing such companies as Airbnb, Pinterest and Snapchat. But their split in 2015 was not nearly as amicable as initially portrayed, and now threatens to get even uglier via litigation.

Backstory: Lee is the former managing partner of SV Angel which he co-founded with Conway, a Silicon Valley investing legend, having pumped early money into companies like Google and PayPal.

In 2015, Lee left SV Angel in what was publicly portrayed as an amicable split – born largely of geography (Lee had moved his family to Los Angeles, and was tired of commuting north). Behind the scenes, however, Conway felt that Lee had been pilfering SV Angel funds (albeit legally, via "fee waiver" agreements Lee had included in fund documents that Conway never read too carefully). I detailed the entire saga in a May 2016 story for Fortune that is featured prominently in Lee's complaint.

Complaint: Lee, who now runs a firm called Refactor Capital, is suing Conway for breach of contract and payment of the estimated $3.5 million he says he's owed via the settlement agreement reached upon his departure ($1.5m of which he claims Conway is holding in escrow). Lee also wants declaratory relief, which could address the $15 million to $20 million he expects to be owed in the future, once companies like Airbnb go public.

Lee's statement to Axios: "When I left SV Angel, Ron Conway and I reached a settlement regarding my departure. Many of the terms we agreed upon were proposed by Ron. I wish Ron no ill will. I simply want him to honor the agreement we signed."

Conway's statement to Axios: "In connection with his departure, the SV Angel funds and David entered into a settlement agreement. Recently a dispute has arisen regarding compliance with some settlement agreement terms. Before we could resolve our differences David filed a lawsuit insisting upon money that SV Angel does not believe he is entitled to receive. It is very disappointing that David is trying to pressure SV Angel to pay monies that do not belong to him, and the SV Angel funds intend to vigorously defend against David's meritless claims."

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Trump pushes to expand ban against anti-racism training to federal contractors

Trump speaking at Moon Township, Penns., on Sept. 22. Photo: Mandel Ngan/AFP via Getty Images

President Trump announced late Tuesday that the White House attempt to halt federal agencies' anti-racism training would be expanded to block federal contractors from "promoting radical ideologies that divide Americans by race or sex."

Why it matters: The executive order appears to give the government the ability to cancel contracts if anti-racist or diversity trainings focused on sexual identity or gender are organized. The memo applies to executive departments and agencies, the U.S. military, federal contractors and federal grant recipients.

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Illustration: Sarah Grillo/Axios

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Louisville declares state of emergency as Breonna Taylor decision looms

A demonstrator holds up a sign of Breonna Taylor during a protest in Louisville, Kentucky. Photo: Brandon Bell/Getty Images

Louisville Mayor Greg Fischer declared a state of emergency Tuesday "due to the potential for civil unrest" ahead of Kentucky Attorney General Daniel Cameron's expected announcement on the Breonna Taylor case.

Of note: Louisville has witnessed more than 115 days of protests over the police killing of Taylor, an unarmed Black woman, with calls for all the officers involved to be charged.

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