JP Morgan, one of the largest banks in the US, has been ordered by a judge to pay the legal fees of lawyers representing the founder of Frank, a mobile banking start-up, in a lawsuit against her. The lawsuit involves allegations that JP Morgan’s executives took proprietary information from Frank, which was developing a financial app, and used it to create their own competing app, Finn.
The lawyers’ legal fees for Frank’s founder, Charlie Javice, were ordered to be paid by JP Morgan in a ruling by Judge Jesse Furman in the US District Court for the Southern District of New York. The ruling came after JP Morgan had attempted to have the lawsuit dismissed.
Javice filed the lawsuit against JP Morgan in 2018, alleging that the bank had used confidential information to develop Finn, which was launched in 2017. JP Morgan has denied the allegations, and the case is set to go to trial in 2022.
The order to pay legal fees is the latest twist in a case that has been ongoing for several years. It highlights the growing importance of fintech startups and the competition they pose to established banks. It also underscores the need for banks to be vigilant about protecting confidential information and intellectual property.
JP Morgan is not the only bank facing legal action over its treatment of fintech startups. In recent years, several other banks, including Wells Fargo and Goldman Sachs, have been accused of taking advantage of the information and technology of fintech startups.
As fintech startups continue to disrupt traditional banking, legal battles between banks and startups are likely to become more common. It remains to be seen how these battles will play out, but it is clear that the competition between traditional banks and fintech startups will only intensify in the years to come.
