JPMorgan Chase has initiated new lawsuits in the UK and Greece related to its investment in fintech company Viva Wallet.
In 2022, JPMorgan invested approximately $800 million for a 48.5% stake in Viva Wallet. The company’s founder, Haris Karonis, retains a 51.49% ownership through his operation, Werealize.com. Karonis began legal proceedings against JPMorgan last year, alleging that the bank is employing tactics to suppress the growth of his company. He contends that JPMorgan is attempting to lower the valuation of Viva by obstructing its expansion into the United States and other European markets.
According to the terms of JPMorgan’s investment, Werealize.com loses the right to reject a takeover offer from the bank if Viva Wallet’s valuation falls below €5 billion by June 2025. A London judge dismissed a previous claim that JPMorgan had motive to depress Viva’s valuation but outlined how the company should be appraised.
Recently, JPMorgan has shifted to a proactive stance, filing a lawsuit in Greece for €916 million. This lawsuit alleges that Karonis and three other executives deprived the bank of the value of its investment. A separate case in the UK claims that Werealize.com violated shareholder agreements with JPMorgan.
Karonis expressed to Bloomberg that “these proceedings are simply the latest step in JPM’s concerted effort to depreciate Viva’s value, to preclude it from expanding in the US and elsewhere, and intimidate its directors, restricting their freedom of action.” In response, a JPMorgan spokesperson stated, “We are disappointed that since the firm’s investment in 2022, WRL has repeatedly and persistently sought to undermine JPMorgan’s rights by breaching the agreement that formed the basis of the firm’s investment. We now look to the courts to enforce the contract terms agreed upon between us.”