A Black-owned neobank and a company it acquired have settled their dispute.
On Monday, Greenwood Financial, a digital banking app for the Black and Latino communities and The Gathering Spot, or TGS, a network of three private clubs that Greenwood acquired in 2022, released a joint statement announcing that they resolved a dispute that bubbled over in the first half of 2023.
"We apologize for distracting our communities over the last week as this became a topic of so much public discussion. As we work together to build for our community and customers, we will continue to hold ourselves to the highest standards," said both Ryan Glover, CEO and co-founder of Greenwood, and Ryan Wilson, CEO and co-founder of TGS, in their joint statement. TGS will continue to operate as an independent subsidiary of Greenwood under the leadership of its co-founders, Wilson and TK Petersen. The terms of the agreement were not disclosed.
According to TechCrunch, the conflict dates back to February, when Wilson filed a complaint against Greenwood that alleged the company engaged in "intentional misconduct to breach its purchase agreement." Greenwood countered in June, saying that the TSG co-founders had misconstrued the contract agreement and disregarded their "own bad conduct that perpetuated the alleged breaches that they complain of now," according to TechCrunch. Wilson filed another complaint this month against Greenwood, alleging various missed payments from the company because of financial issues verging on insolvency.
TGS helped form the backbone of new perks that Greenwood started offering in November 2022 as part of its Elevate tier, along with Valence, a website that helps Black professionals advance their careers and that Greenwood also acquired in 2022. Elevate costs $200 per month and folds in benefits that include club access through TGS.
When asked for comment, Greenwood pointed American Banker to the joint statement. The Gathering Spot did not respond to a call before the story went to press.
Greenwood acquired Kinly, another Black-oriented neobank previously known as First Boulevard, in May. It has raised funding from large banks including Citi, JPMorgan Chase, PNC and Truist, as well as Mastercard and Visa.
