A conflict between J.P. Morgan Chase and the Greek FinTech company Viva Wallet continues to escalate, with the banking giant now pursuing legal action. The dispute, centered on the valuation and shareholder agreements tied to J.P. Morgan’s $800 million investment in Viva Wallet, highlights the growing tensions between investors and companies in the competitive FinTech sector. Previous legal claims and accusations have already set the stage for a complex confrontation, impacting the broader market’s perception of cross-border investments.
What is the core of the dispute?
J.P. Morgan recently initiated two lawsuits, one in Greece and another against investment entity Werealize, citing breaches of shareholder agreements. The Greek lawsuit seeks $944 million, alleging that Viva Wallet’s founder and CEO, Haris Karonis, along with other executives, engaged in actions that undermined the firm’s valuation since March 2022. Meanwhile, the U.S.-based lawsuit accuses Werealize of violating contractual terms by not obtaining J.P. Morgan’s consent for significant business decisions. These allegations suggest a broader contention over control and strategic direction within Viva Wallet.
How has Viva Wallet responded to the lawsuits?
Viva Wallet CEO Haris Karonis has strongly refuted J.P. Morgan’s claims, characterizing the legal actions as attempts to suppress the company’s value and hinder its geographic expansion. In a statement, he said,
“These proceedings are simply the latest step in J.P. Morgan’s concerted effort to depreciate Viva’s value, to preclude it from expanding in the United States and elsewhere, and intimidate its directors.”
Despite the ongoing legal battle, Viva Wallet remains a prominent player in the European FinTech space, offering card acceptance through point-of-sale systems and online payment solutions.
J.P. Morgan’s spokesperson expressed disappointment, accusing Werealize of persistently undermining the agreements that initially facilitated the investment.
“We are disappointed that since the firm’s investment in 2022, WRL has repeatedly and persistently sought to undermine JPM’s rights by breaching the agreement that formed the basis of the firm’s investment. These actions harm not only Viva but also Greece’s attractiveness for future significant investments,”
the spokesperson said. Both parties now await judicial intervention to resolve the conflict.
Legal disputes between the two companies are not new. In February 2024, Karonis sued J.P. Morgan, accusing it of trying to stifle Viva Wallet’s growth and valuation while competing unfairly in Europe. Similarly, J.P. Morgan previously filed claims against Karonis, alleging efforts to circumvent investor rights. Resolution of some earlier disagreements occurred in June 2024, when a London court ruled on valuation methodologies, but the core issues remain unresolved.
While J.P. Morgan’s investment in Viva Wallet initially signaled a significant step forward in FinTech partnerships, these lawsuits underscore challenges investors face in maintaining governance in fast-growing startups. Viva Wallet’s critical role in Europe’s digital payment ecosystem makes these legal developments particularly consequential for stakeholders and potential investors.
The ongoing dispute reflects broader tensions in the FinTech industry, particularly around shareholder agreements and valuation disputes in cross-border investments. Companies operating in highly dynamic industries like digital payments must navigate complex relationships between investors and founders to ensure growth and stability. This case also serves as a cautionary tale for firms and investors entering strategic agreements without comprehensive alignment on long-term objectives and governance practices.
