A legal battle is unfolding after Chris Gray, founder of Scholly, a startup backed by Shark Tank, filed a lawsuit against Sallie Mae for wrongful termination. Gray alleges his dismissal was unjust and seeks damages for lost income and reputational harm.
The lawsuit also claims Sallie Mae is profiting from selling student data through a subsidiary. Gray’s legal team argues that the company’s handling of user information violates privacy agreements signed during the acquisition. Sallie Mae, which acquired Scholly in 2022, denies all allegations and has stated it will vigorously defend itself in court.
Gray’s complaint, filed in a Delaware court, outlines a series of disputes between him and Sallie Mae executives after the acquisition. He alleges he was sidelined from key decisions and later removed from his role without proper cause. The lawsuit seeks reinstatement or financial compensation, along with unspecified damages for emotional distress.
Sallie Mae, a major player in student lending, has not commented beyond its initial denial. The company’s legal response is expected within weeks. The case highlights growing tensions in tech acquisitions where founders clash with acquirers over control and data use.
Gray’s legal action follows a pattern of disputes in the fintech sector, where founders often struggle to adapt after selling their companies.
Source: techcrunch.com