JP Morgan files lawsuits against fellow Viva Wallet shareholder WeRealize and four Viva Wallet board members
JP Morgan has filed two new lawsuits this month concerning its investment in Viva Wallet, a European cloud-based paytech, adding yet another chapter to the legal dispute between the parties.
JP Morgan has filed lawsuits in the UK and Greece
The US bank first acquired a 48.5% stake in Viva Wallet in 2022 in an effort to tap the European payments market, with WeRealize, led by Viva Wallet founder Haris Karonis, retaining the remaining share.
JP Morgan and WeRealize exchanged lawsuits last year, with WeRealize alleging that JP Morgan was actively limiting Viva Wallet’s growth by preventing its entry into new markets and attempting to lower the company’s value, while JP Morgan alleged infringements against its pre-agreed rights as an investor in the deal.
Reports suggest 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.
The High Court in London delivered its final ruling on the dispute in June, which set out specific measures to ensure the accurate valuation and growth of Viva Wallet.
Now, JP Morgan has filed two new lawsuits – one in Greece and one in the UK.
A source with knowledge of the matter told FinTech Futures that on 2 January, the US bank filed a claim in Greece against Viva CEO Haris Karonis and three Viva directors alleging that they have deprived the bank “of the value of its investment in Viva through unlawful actions from March 2022 onwards”, with the bank seeking €916 million.
In addition, the source says that on 7 January, JP Morgan filed a claim in England against WeRealize, alleging breaches of the shareholders agreement between the two companies.
In a statement sent to FinTech Futures, Karonis says: “These proceedings are simply the latest step in JPM’s concerted effort to depreciate Viva’s value, to preclude it from expanding in the United States and elsewhere, and intimidate its directors restricting their freedom of action.”
Commenting on the two lawsuits, a JP Morgan spokesperson tells FinTech Futures: “We are disappointed that since the firm’s investment in 2022, WRL has repeatedly and persistently sought to undermine JPM’s rights by breaching the agreement that formed the basis of the firm’s investment. These actions harm not only Viva but also Greece’s attractiveness for future significant investments. We now look to the courts to enforce the contract terms agreed upon between us.”
