JP Morgan and fellow Viva Wallet shareholder WeRealize exchange lawsuits
JP Morgan has initiated legal action against WeRealize, the majority shareholder in Greek fintech firm Viva Wallet, alleging that the holding company has taken actions “to limit or circumvent our contractual and legal rights as an investor in Viva”.
Viva Wallet shareholders JP Morgan and WeRealize clash
The US bank first acquired a 48.5% stake in Viva Wallet in December 2022 in an effort to tap the European payments market, with WeRealize, led by Viva Wallet founder Haris Karonis, retaining the remaining share.
However, reports have suggested tension has been rising between the two companies in recent months.
Now, JP Morgan has filed a lawsuit against the holding company, alleging infringements against its pre-agreed rights as an investor in the deal.
“This action was filed after exhausting all other options. Despite this dispute, we believe in Viva Wallet, its people, our strategic investment in the company and our wider business in Greece,” a JP Morgan spokesperson says.
The Financial Times reports that WeRealize has countered the lawsuit by filing its own lawsuit the same day, alleging that JP Morgan is actively limiting Viva Wallet’s growth by preventing its entry into new markets, namely those of the US and Europe, while simultaneously attempting to lower the company’s value.
Banking Dive reports that the terms of JP Morgan’s acquisition deal with Viva Wallet state that the bank is allowed to take full control of the fintech if its valuation drops below €5 billion by June 2025.
WeRealize and Karonis did not return FinTech Futures‘ request for comment at this time.
For Viva Wallet, which currently serves small and medium-sized businesses (SMBs) across 23 countries with expense management, bill pay, virtual debit and other payment solutions, it has responded to the lawsuits by reiterating that it is “not involved in any legal process with any of its shareholders and continues following its growth path dynamically and consistently”.
