It’s extremely rare for a lawsuit to go over 1 million.

There are many lawsuits filed against them, and they have failed to repay many past investors - I personally know of at least 20 people who are collectively owed millions. 

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

It all works out well when the market is going up and investors are getting paid, but when the market softens and investors lose money, the complaints and lawsuits come in and the dominoes fall. 

This means that if anything goes wrong with the property—like a tenant getting injured or a lawsuit related to the rental activities—the LLC, not you personally, would be the one held responsible.

I do NOT want a lawsuit or do not want bad living conditions for tenants either.

When gathering evidence for the lawsuit, it became clear his life was unraveling.

In left leaning Seattle I've lost more lawsuits than won, but that doesn't make me stop making tenants answer for their damages. 

I also look for lawsuits and see what happened in them.

Quote from @Lonnie Davey: He has lost control of  one of his Texas assets and apparently all of the passive investors capital.There may be more. there is another forum post where the lawsuit against him personally is posted.