In the latest chapter of a contentious partnership, JP Morgan has filed two lawsuits over its investment in Greek fintech Viva Wallet.
JP Morgan retaliates over Viva Wallet investment
The legal disputes highlight ongoing tensions between the US banking giant and its joint venture partner, Werealize.com (WRL), which holds a controlling 51.49% stake in Viva Wallet.
In 2022, JP Morgan acquired a 48.5% stake in Viva Wallet for approximately $800 million, marking a significant move into Southern Europe’s fintech landscape.
The agreement included a clause allowing JP Morgan to make a buyout offer for WRL’s majority stake if Viva Wallet’s valuation falls below €5 billion ($5.4 billion) by July 2025.
However, disputes over the valuation of Viva Wallet have escalated since then, leading to a series of legal confrontations.
The Greek Lawsuit
On January 2, JP Morgan filed a lawsuit in Greece seeking €916 million ($944 million).
The bank alleges that Viva Wallet CEO Haris Karonis and three other executives engaged in unlawful actions beginning in March 2022 that deprived JP Morgan of the value of its investment.
In response, Karonis denounced the lawsuit as an act of intimidation.
“These proceedings are simply the latest step in JP Morgan’s concerted effort to depreciate Viva’s value, preclude its expansion into the US, and intimidate its directors,” he said in a statement.
The UK Lawsuit
Simultaneously, JP Morgan has initiated legal proceedings in the UK against WRL, accusing it of breaching shareholder agreements.
According to the bank, WRL failed to seek its consent before making significant business decisions, violating the terms of their joint venture.
A spokesperson for JP Morgan expressed frustration over WRL’s alleged actions, stating, “We are disappointed that since the firm’s investment in 2022, WRL has persistently sought to undermine JP Morgan’s rights. We now look to the courts to enforce the agreed contract terms.”
A Longstanding Dispute Over Valuation
The valuation of Viva Wallet has been a point of contention.
In June 2024, a London court intervened after JP Morgan and WRL clashed over a €2 billion difference in the company’s valuation.
The judge paved the way for a fresh valuation, but disputes persist, with each side accusing the other of undermining their rights and obligations under the agreement.
The lawsuits underscore the complexities of fintech investments and joint ventures, particularly in high-growth sectors like digital payments.
As the legal battles unfold, the outcome could have far-reaching implications for both JP Morgan’s strategic goals and the future of Viva Wallet in the global fintech market.
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