UK Court Resolves Legal Dispute Between JPMorgan, Viva Wallet Founder
A Thursday (June 13) ruling by a London High Court judge reportedly resolved a legal dispute between J.P. Morgan Chase & Co. and Haris Karonis, the founder and CEO of Greek FinTech company Viva Wallet.
The resolution of the feud opens the possibility of a sale of Viva Wallet, marking a milestone for J.P. Morgan in its strategy of investing in high-growth FinTech companies, 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 J.P. Morgan and Karonis led to legal claims filed against each other in February. Karonis alleged the banking giant tried to push down Viva Wallet’s valuation, while J.P. Morgan alleged that Karonis had taken steps to limit or circumvent its rights as an investor.
The court’s verdict accepted elements of both parties’ arguments, providing clarity on the valuation of Viva Wallet and its potential for expansion into new markets, according to the FT report.
The resolution of the dispute ends J.P. Morgan’s legal headache and paves the way for a potential sale of Viva Wallet, the report said.
J.P. Morgan expressed its satisfaction with the court’s decision, stating that it provides a step toward fair and transparent valuations, which could expedite the sale of Viva before the FinTech mergers and acquisitions market further softens, per the report.
Karonis, too, expressed his excitement about the ruling, saying that 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, the report said. In 2020, it acquired a banking license after purchasing Greek digital bank Praxia.
This legal dispute is not the first time J.P. Morgan has faced challenges with the founders of businesses it has invested in, per the report. The bank has invested billions of dollars in over 40 FinTech companies since 2021. Last year, J.P. Morgan sued Charlie Javice, the founder of Frank, a student finance platform that the bank had acquired for $175 million in 2021, over allegations of inflating user numbers.
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