JPMorgan Chase & Co. has initiated two lawsuits against Greek fintech company Viva Wallet, escalating a legal battle that has been brewing since the bank’s investment in 2022. The lawsuits, filed in Greece and the UK, center around allegations of mismanagement and breach of shareholder agreements.
Key Takeaways
- JPMorgan is seeking โฌ916 million ($943 million) in damages from Viva Wallet’s CEO and executives.
- The lawsuits are part of a broader dispute over the valuation of Viva Wallet.
- Viva Wallet’s management has denounced the lawsuits as intimidation tactics.
Background of the Dispute
In 2022, JPMorgan acquired a 48.5% stake in Viva Wallet for approximately $800 million, while Werealize.com Ltd. retained a 51.49% ownership. The investment was intended to bolster JPMorgan’s presence in the fintech sector, particularly in southern Europe. However, tensions have escalated as disagreements over the company’s valuation and management practices have surfaced.
Details of the Lawsuits
- Greek Lawsuit: Filed on January 2, 2025, JPMorgan claims that Viva Wallet’s CEO, Haris Karonis, along with three other executives, unlawfully deprived the bank of the value of its investment. The bank is seeking โฌ916 million in damages, alleging that actions taken by the executives since March 2022 have harmed its financial interests.
- UK Lawsuit: This case targets Werealize.com, accusing the company of breaching shareholder agreements. JPMorgan asserts that Werealize failed to obtain its consent before making significant business decisions, which is a violation of the terms agreed upon during the investment.
Management’s Response
In response to the lawsuits, Karonis has publicly denounced the actions as attempts to intimidate Viva Wallet’s management and undermine the company’s value. He claims that these legal proceedings are part of JPMorgan’s strategy to restrict the company’s growth and expansion, particularly in the U.S. market.
Previous Legal Proceedings
The ongoing legal saga has seen both parties previously engage in litigation over the valuation of Viva Wallet. In June 2024, a London judge ruled on how the company should be valued, following a significant โฌ2 billion discrepancy between the two sides. This ruling was seen as a partial victory for both parties, but it has not resolved the underlying tensions.
Implications for the Future
The outcome of these lawsuits could have significant implications for both JPMorgan and Viva Wallet. If JPMorgan succeeds in its claims, it could lead to a reevaluation of the partnership and potentially impact the future operations of Viva Wallet. Conversely, if Viva Wallet’s management can successfully defend against these claims, it may strengthen their position and allow for continued growth in the competitive fintech landscape.
As the legal proceedings unfold, stakeholders in both companies will be closely monitoring the situation, as it could set important precedents for future investments and partnerships in the fintech sector.
Sources
- JPMorgan Files Two Lawsuits in Greece and UK Over Viva Wallet – Bloomberg, Bloomberg.com.
- JP Morgan files two lawsuits against Greece’s Viva Wallet as legal saga continues – ThePaypers, The Paypers.
- JPMorgan Files Two Lawsuits in Greece and UK Over Viva Wallet, Claims Journal.
- JPMorgan files two lawsuits against Greece’s Viva Wallet as legal saga continues | Reuters, Reuters.
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