Advertisements
Home News JPMorgan Takes Legal Action Against Viva Wallet In Ongoing Valuation Dispute

JPMorgan Takes Legal Action Against Viva Wallet In Ongoing Valuation Dispute

by Celia

JPMorgan Chase & Co. (NYSE: JPM) has filed two lawsuits against Greece’s Viva Wallet, escalating a long-standing legal battle over the fintech company’s valuation. The suits, filed in both Greece and the United Kingdom, focus on claims that Viva Wallet’s executives have engaged in unlawful actions that undermined the value of JPMorgan’s 2022 investment in the company.

Advertisements

According to a source familiar with the matter, JPMorgan filed a lawsuit in Greece on January 2, seeking €916 million (approximately $944 million) in damages. The bank alleges that Viva Wallet’s CEO, Haris Karonis, along with three other executives, took actions that negatively impacted the value of JPMorgan’s stake in the business, which was acquired in 2022. These actions are said to have occurred from March 2022 onwards, depriving JPMorgan of the full value of its investment.

Advertisements

In response, Karonis confirmed the lawsuits, calling them an act of “intimidation” and a part of JPMorgan’s broader strategy to undermine Viva Wallet’s growth. He accused JPMorgan of seeking to “depreciate Viva’s value” and prevent its expansion, particularly in the U.S. market, while also attempting to intimidate the company’s board of directors. However, Karonis did not provide further details about the specifics of the lawsuits in his statement.

Advertisements

JPMorgan had purchased a 48.5% stake in Viva Wallet for around $800 million in 2022. The fintech company, which operates primarily in Southern Europe, is majority-owned by Werealize (WRL), which holds 51.49% of the shares. The original investment deal includes a provision that would allow JPMorgan to take control of Viva Wallet if the company is valued at less than €5 billion ($5.4 billion) by July 30, 2025.

The latest lawsuits follow a June ruling by a London court that addressed the dispute over the valuation of Viva Wallet. Both parties claimed partial victory when the judge determined the parameters for how the fintech business should be valued. This decision marked a significant step in the ongoing legal drama between JPMorgan and Viva Wallet.

Additionally, JPMorgan has filed a separate lawsuit against Werealize in the UK. The new suit claims that Werealize breached shareholder agreements by taking actions that bypassed JPMorgan’s consent, violating obligations related to certain significant business decisions. According to the source, this case seeks to hold Werealize accountable for failing to secure JPMorgan’s approval before proceeding with these actions.

The legal battle between JPMorgan and Viva Wallet continues to unfold, with both sides seeking to protect their interests and the future of the high-stakes partnership.

You Might Be Interested In

Advertisements

You may also like

logo

Bilkuj is a comprehensive legal portal. The main columns include legal knowledge, legal news, laws and regulations, legal special topics and other columns.

「Contact us: [email protected]

© 2023 Copyright bilkuj.com