JPMorgan has shutdown the website of Frank, the college financial planning platform it acquired in 2021, after suing the company for creating almost four million fake accounts.
When the multinational sent marketing test emails to a list of customers provided by Frank, only 28 per cent were delivered. JPMorgan said that similar campaigns typically yielded a 99 per cent delivery rate.
Subsequently, JPMorgan filed a lawsuit, suing Frank’s founder Charlie Javice and chief growth officer Olivier Amar.
The lawsuit read in part: "(JPMorgan) paid $175 million for what it believed was a business deeply engaged with the college-aged market segment with 4.265 million customers; instead, it received a business with fewer than 300,000 customers," the bank said in the lawsuit filed last month.”
Javice contests that JPMorgan’s lawsuit is “nothing but a cover”, having sued JPMorgan a few days earlier with claims the bank terminated her employment in "in bad faith", seeking to avoid $28 million in payments that were due to her after a "series of groundless investigations" into her conduct.
"After JPM rushed to acquire (Javice's) rocketship business, JPM realised they couldn't work around existing student privacy laws, committed misconduct and then tried to retrade the deal," said Javice’s legal team.
As of Thursday. Frank's website said it was no longer available.
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