According to GrokLaw, BayStar, one of SCO’s PIPE investors, is suing SCO. From the press release:

SAN FRANCISCO, July 23 /PRNewswire-FirstCall/ – BayStar Capital today announced that, despite a prior announcement by The SCO Group, Inc. (Nasdaq: SCOX - News) to the contrary, the transactions contemplated by the Stock Repurchase Agreement by and between BayStar and SCO, dated as of May 31, 2004, have not closed due to an unresolved dispute between the parties. BayStar intends to file an action requesting a declaratory judgment with respect to its rights under the Stock Repurchase Agreement. Until a final determination is made by the court, BayStar maintains its position as a Series A-1 Preferred stockholder of SCO.