Greenwood, a neobank targeting Black and Brown communities, has settled its business dispute with The Gathering Spot, the networking and co-working club it acquired in 2022, the two companies announced in a joint statement Monday.
The two firms, which share a similar mission to serve Black entrepreneurs, became embroiled in a legal dispute in February, when TGS founders T’Keel “TK” Petersen and Ryan Wilson sued the neobank, claiming it owed them and other TGS shareholders approximately $5 million in earn-out payments.
Greenwood responded with a countersuit in June, accusing Wilson and Petersen of making “false and misleading statements” affecting the private membership network’s valuation at the time of the 2022 deal, according to the Atlanta Journal-Constitution.
“No one wins when the family feuds,” Wilson and Greenwood co-founder and CEO Ryan Glover said in a joint statement Monday. “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.”
The companies did not disclose the terms of the agreement.
“[B]oth Greenwood and The Gathering Spot are satisfied with the outcome and look forward to continuing to champion inclusive economic growth and community,” the companies said. “The settlement marks the end of a period of friction between the two companies and opens a new chapter of collaboration and shared visions.”
Greenwood’s purchase of TGS last year is one a series of acquisitions the fintech has made to expand the platform’s offerings beyond financial services to include entertainment and career development geared toward Black and Brown communities.
In an interview last year, Glover said the company’s purchase of TGS, combined with its acquisitions of music festival A3C and professional networking platform Valence, created “the largest combined fintech and community platform for Blacks and minorities, serving a community of over a million people.”
Greenwood also acquired fellow affinity neobank Kinly, formerly First Boulevard, for an undisclosed amount in May.
