JPMorgan Chase has launched new lawsuits in both the UK and Greece as part of an ongoing conflict over its investment in Viva Wallet, a fintech company founded by Haris Karonis. The Wall Street bank acquired a 48.5% stake in Viva Wallet in 2022 for approximately $800 million, while Karonis retained a controlling 51.49% share through his company, Werealize.com.
The dispute began when Karonis initiated legal proceedings against JPMorgan, accusing the bank of obstructing Viva Wallet’s expansion into the U.S. and new European markets. According to Karonis, these alleged actions are part of a deliberate strategy to suppress the fintech firm’s valuation. Under the terms of JPMorgan’s investment, Werealize.com would lose the right to veto a takeover offer from JPMorgan if Viva Wallet’s valuation falls below €5 billion by June 2025.
A London judge in June dismissed claims that JPMorgan had an incentive to reduce Viva’s valuation but clarified guidelines on how the business should be assessed. However, JPMorgan has now escalated the legal battle. The bank has filed a lawsuit in Greece seeking €916 million, alleging that Karonis and three other executives undermined its investment’s value. Additionally, a UK lawsuit accuses Werealize.com of breaching shareholder agreements.
Responding to the lawsuits, Karonis told Bloomberg, “These proceedings are simply the latest step in JPM’s concerted effort to depreciate Viva’s value, to preclude it from expanding in the U.S. and elsewhere, and intimidate its directors, restricting their freedom of action.”
JPMorgan, however, defended its actions in a statement: “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.”
This intensifying legal battle underscores broader tensions between financial institutions and fintechs, as major players vie for control in the fast-evolving financial technology landscape.