Legal
JPMorgan Ordered to Pay Javice's Lawyers While They Sue Her
- Startup founder sued bank to cover defense against fraud claim
- Javice is accused of inflating customer numbers for Frank site
Charlie Javice leaves federal court in New York on April 4.
Photographer: Lawrence Neumeister/AP Photo
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JPMorgan Chase & Co. must pay Frank founder Charlie Javice’s defense costs in its suit accusing her of defrauding the bank in its $175 million acquisition of her college-loan-planning site.
Delaware Chancery Court Judge Kathaleen St. J. McCormick concluded Monday JPMorgan was legally obligated to cover Javice’s legal bills, rejecting the bank’s argument that her alleged fraud fell outside the scope of the 2021 merger agreement. The ruling likely also covers Javice’s defense to criminal fraud charges brought by federal prosecutors over the disputed deal.