Fintech
Court resolves dispute between JPMorgan and Viva Wallet founder
A ruling on Thursday (13 June) by a High Court judge in London has reportedly resolved a legal dispute between JP Morgan Chase & Co. AND Haris Karonisfounder and CEO of the Greek FinTech company Viva wallet.
The resolution of the feud opens up the possibility of selling Viva Wallet, marking a milestone for JP Morgan in its strategy of investing in high-growth FinTech companies, writes the Financial Times reported Thursday.
JP Morgan invested more than $800 million into Viva Wallet two years ago, acquiring a 48.5% stake in the company, according to the report.
Disagreements between JP Morgan and Karonis led to legal claims they filed lawsuits against each other in February. Karonis said the banking giant tried to lower Viva Wallet’s valuation, while JP Morgan said Karonis had taken steps to limit or circumvent his rights as an investor.
The court’s verdict accepted elements of both sides’ arguments, providing clarity on Viva Wallet’s valuation and its potential to expand into new markets, according to the FT report.
The resolution of the dispute puts an end to JP Morgan’s legal headaches and paves the way for a potential sale of Viva Wallet, the report said.
JP Morgan expressed satisfaction with the court’s decision, saying it was a step towards fair and transparent valuations, which could accelerate the sale of Viva before the FinTech mergers and acquisitions market weakens further, according to the report.
Karonis also expressed her enthusiasm for the ruling, saying that it allows Viva Wallet to be appropriately valued based on its growth strategy in the United States, reflecting its fair market value, according to the report.
Viva Wallet, founded in 2000, has become one of Southern Europe’s largest FinTech companies, offering payment services in 24 countries, the report said. In 2020, it acquired a banking license after purchasing Greek digital bank Praxia.
This legal dispute is not the first time JP Morgan has faced challenges with the founders of companies it has invested in, according to the report. Since 2021, the bank has invested billions of dollars in more than 40 FinTech companies. JP Morgan sued last year Charlie Javicethe founder of Frank, a student financing platform that the bank had acquired for $175 million in 2021, amid allegations of inflating the number of users.