A ruling handed down on Thursday June 13 by a judge at the High Court in London would have resolved a legal dispute between JP Morgan Chase & Co. And Haris Karonisfounder and CEO of Greek FinTech company Viva Wallet.
The resolution of the feud opens the possibility of a sale of Viva Wallet, marking an important step for JP Morgan in its strategy of investing in high-growth FinTech companies, according to the Financial Times. reported THURSDAY.
J.P. Morgan invested more than $800 million in 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 filed against each other in February. Karonis alleged that the banking giant attempted to drive down Viva Wallet’s valuation, while JP Morgan alleged that Karonis took steps to limit or circumvent its rights as an investor.
The court 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 litigation ends JP Morgan’s legal headache and paves the way for a potential sale of Viva Wallet, according to the report.
JP Morgan expressed It is satisfaction with the court’s decision, saying it is a step toward fair and transparent valuations, which could accelerate the sale of Viva before the FinTech M&A market slows further, the report said.
Karonis also expressed excitement over the decision, saying it allows Viva Wallet to be properly 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 the largest FinTech companies in southern Europe, offering payment services in 24 countries, according to the report. In 2020, it acquired a banking license after buying Greek digital banking Praxis.
This legal dispute is not the first time JP Morgan has faced difficulties with the founders of companies it has invested in, according to the report. The bank has invested billions of dollars in more than 40 FinTech companies since 2021. Last year, JP Morgan sued Charlie Javicethe founder of Frank, a student financing platform that the bank acquired for $175 million in 2021, following allegations of inflate the number of users.
