Ross Levinsohn, interim CEO of Yahoo, is facing more than just the continuing patent struggle with Facebook in terms of lawsuits. According to TechCrunch, This week could see a decision in a case that has Levinsohn as the defendant. The case accuses Levinsohn and other investors of fraud, breach of Contract and 10 other accusations.

It was brought forth by Kate Paley, the daughter of CBS’s William Paley, against Radar Networks, a company that Paley had invested $5 million in, in 2007. She claims that she saw no return on her investment, and shady business practices were to blame.

Levinsohn was on the board of directors at Fuse Capital, which invested in Radar Networks. Other investors in the mix include Steve Hall, MD of Vulcan Capital, and Nova Spivack. Paley says they are all to blame for her not seeing anything come from her investment.

Levinsohn and company are seeking to claim bankruptcy for Radar Networks, which will happen June 8th. Paley’s case hangs on the courts decision in this matter right now. If they are allowed bankruptcy, Paley’s case cannot be pursued. If the motion for bankruptcy is denied, the case will go to trial.

Both parties have been involved in settlement negotiations, but each time no resolution was reached. Sources at TechCrunch say that Levinsohn and fellow defendants see this lawsuit as nothing more than a nuisance, lacking any real merit.

Radar Network is likely to be allowed bankruptcy, and it is unlikely that its investors would have willingly let the company go under, on either side of the dispute. It is an awkward situation for Levinsohn, however. Being on the attacking end of a patent infringement lawsuit on one front and being accused of fraud on another cannot bode well for Yahoo’s CEO.