Why a fund?
Because lawsuits are expensive (that's why they're so often used as a threat, if you've ever wondered). Because of that, and because the duration of the litigation is undetermined, Jane will need financial assistance. Jane's attorney, Marc Randazza, is contributing by discounting his hourly rate. Even with a generous discount, it's still expensive.
For those just tuning in, Dear Author is being sued over a recently published blog post which details the rise and fall of used to be a leading romance publisher.
Ellora's Cave, once known as a pioneer in erotic romance, has been having financial issues over the past couple years. As Dear Author detailed in their post, authors and editors are saying they haven't been paid, reversion requests are being ignored, and the business is generally going down the tubes.
Rather than address the many issues facing their business, Ellora's Cave has chosen to file a defamation lawsuit against Dear Author and its proprietor. In response, Dear Author has hired Marc Randazza and elected to pursue a vigorous defense.
The case is only a week old at this time, which when converted from legal system time to normal people time is about half an hour, so it's far too early to say what the outcome will be.
image by michael_d_beckwith