FinApps hits Envestnet/Yodlee with $100 million lawsuit

Fintech startup Financial Apps is suing former partner Envestnet/Yodlee, claiming that the latter ripped off FinApps' proprietary code to release its own product.

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FinApps hits Envestnet/Yodlee with $100 million lawsuit

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FinApps struck a technology licensing deal with Yodlee in 2016 to use the startup's credit decisioning software to create a platform dubbed Risk Insights.

The relationship deteriorated when Yodlee began striking third party deals with other firms, such as Equifax, without reference to FinApps' contribution to the platform.

The lawsuit alleges that Yodlee reverse-engineered FinApps code and passed it off as its own, in the process cold-shouldering the startup as it took the product to market.

FinApps is seeking $100 million in damages from Yodlee and has hired high profile attorney Marc Kasowitz to prosecute the case.

Kasowitz rose to prominence as the personal attorney to Donald Trump, defending the President against claims of sexual harassment and of aiding and abetting Russian interference in the election campaign. He continues to work for Trump and is actively involved in litigation on his behalf.

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Comments: (1)

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Being personal lawyer to a POTUS obviously goes at the top of Kasowitz's bio but it should not take away his firm's unique distinction of being the first law firm to win a jury trial in an ERP software lawsuit. As it says on the firm's website, "The trial appears to be the first instance in which a jury found professional negligence by a software implementation firm."

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