The UK courts ruled to block JPMorgan from taking further legal action against the directors of Viva Wallet on Friday, the latest twist in the long-running dispute over the banking giant’s investment in the Greek fintech.
In 2022, JPM took a 48.5% stake in Viva Wallet, one of Greece’s biggest fintech companies. WRL, a company owned by Viva founder and CEO Haris Karonis, held the remaining stake. At the time, the acquisition was celebrated as a triumph for Greece’s fledgling tech ecosystem, valuing Viva Wallet at more than $2bn.
But within a couple of years, the relationship between the two parties deteriorated, with both parties filing lawsuits against each other last year. In January this year, JPM launched suits in Greece and the UK, demanding €917m in damages for losses made on its 2022 investment before deciding to withdraw its legal action in the UK.
To combat further litigation, Karonis filed an injunction against the US bank in March this year, accusing JPM of harassing WRL leadership and describing its damages claim as “objectively vexatious, oppressive and unconscionable”.
Both WRL and JPM claimed victory following the UK Commercial Court’s ruling.
Karonis told Sifted: “We welcome the Court’s finding that JPM breached its Shareholders’ Agreement (SHA) with WRL and must discontinue its baseless Greek proceedings against certain Viva board members, in which it claimed €917 million in damages (the amount invested in Viva).”
But a JPM spokesperson highlighted the Court’s rejection of several of WRL’s claims against them, particularly that the US investment bank had acted in bad faith towards the fintech.
“While we will continue to address their litigious tactics, and many matters are still being resolved by the courts, our commitment remains steadfast to the business and our investment,” the JPM spokesperson said.
“We hope these rulings will encourage WRL/Viva to redirect their focus and energy towards the success of Viva.”
The ongoing saga
Today’s ruling is the latest twist in JPM’s ill-fated acquisition of Viva Wallet — and the ordeal is not over yet.
The crux of the conflict centres on a clause included in the terms of the deal that says WRL would lose its right to reject a JPM takeover offer if the business is valued below €5bn by July 30, 2025.
The UK Supreme Court rejected JPM’s application to appeal the clause last month.
And according to a document previously obtained by Sifted, the US banking giant exercised that option in January 2024 (Sifted understands JPM maintains it has yet to exercise its option).
Sifted understands the exercise notice issue – whether JPM’s January exercise notice was a valid exercise of its call option – will be heard in court later in the year.
Read the orginal article: https://sifted.eu/articles/jpmorgan-legal-action-viva/
