Solid Financial Technologies reportedly settles dispute with FTV Capital
Solid Financial Technologies, a Banking-as-a-Service (BaaS) infrastructure provider based in the US, has reportedly settled an ongoing dispute with investor FTV Capital and has agreed to buy back the VC firm’s stake in the start-up at a discounted price, according to Fintech Business Weekly.
Solid and investor FTV Capital reportedly reach settlement
FTV Capital led Solid’s Series B funding round in August 2022, reportedly making a $61 million investment in the company.
Just over a year after the round closed however, FTV Capital filed a complaint with the Delaware Chancery Court in September 2023, in which it accused Solid of invoicing and recording revenue from “customers that were not actually using its services or lacked the ability or intention to pay”.
“Had FTV known the truth of the company’s financial position and customer relationships, it never would have purchased any of the company’s stock,” the complaint reads.
Solid quickly rejected FTV’s allegations by filing a countersuit the following month, in which it claimed that FTV had carried out comprehensive due diligence and benefitted from “full access” to its data prior to the investment being made – including its customer contracts, financial statements and invoices – and alleging that the firm was “resorting to made-up claims of fraud, threats and strong-armed tactics to try to get its money back”.
However, Fintech Business Weekly reports that Solid and FTV have now reached a settlement to resolve the matter, which will see Solid buy back FTV’s stake in full, but at a 56% discount of $1.04 per share from the original purchase price of $2.40 per share.
Both Solid and FTV have been contacted by FinTech Futures regarding the development.
