Black-owned digital banking platform Greenwood is being sued by the founders of The Gathering Spot (TPG), a members-only club for black professionals that it acquired for $50 million in May 2022.
Gathering Spot founders Ryan Wilson and T’Keel Petersen have filed suit in Fulton County Superior Court against Greenwood CEO Ryan Glover and board member Dr. Paul Judge for alleged fraud and deception, claiming that Greenwood failed to provide payments on a $5 million earn-out agreement.
The filing questions Greenwood's solvency after the bank terminated Gathering Spot's CFO Peterson and replaced him with a white CFO, causing outrage among the firm's member base.
The lawsuit alleges that Greenwood "engaged in intentional misconduct to knowingly breach the Parties’ purchase agreement. Defendant’s intentional misconduct constitutes a material breach of the purchase agreement. It is further clear that Defendant will continue to commit material breaches of the purchase agreement, including with respect to the upcoming payment due March 31, 2023.”
Along with seeking millions of dollars for damages, Wilson and Petersen want to regain ownership of The Gathering Spot.
For its part, Greenwood has counter-sued, claiming that TGS misrepresented its financial position at the time of the sale, leading to financial headaches post-acquisition.