Deals
JPMorgan Says It Was Defrauded in $175 Million Purchase of College Site
- Bank bought online college financial-planning site in 2021
- JPMorgan says Frank founder lied about size of customer base
JPMorgan Chase & Co. offices in London.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
JPMorgan Chase & Co. is claiming the founder of Frank, a college financial-planning site the bank acquired in 2021, defrauded it by vastly inflating the number of customers the company had.
The bank “paid $175 million for what it believed was a business deeply engaged with the college-aged market segment with 4.265 million customers,” JPMorgan said in a Dec. 22 lawsuit filed in Delaware federal court. “Instead, it received a business with fewer than 300,000 customers.”