Atlanta-based fintech Greenwood in lawsuit over failed acquisition payments

Greenwood, a US banking app that caters to Black and Latino customers, is facing allegations of missed payments after acquiring The Gathering Spot (TGS), a private nationwide networking hub and workspace for Black professionals. 

When Greenwood acquired the networking and workspace in 2022, the financial terms were not disclosed. But, according to court hearings in July, Greenwood paid $50m. Since May of last year, the business dealings have led to a lawsuit by both parties, and social media outrage by some Gathering Spot members. 

TGS founders T’Keel “TK”  Petersen and Ryan Wilson, who co-founded the networking company sued Greenwood earlier this year, accusing the Atlanta-based fintech company of failing to meet the agreed-upon payments. The founders are seeking $5m in earn-out payments. 

Greenwood did not respond to a request for comment. 

In response, Greenwood promptly countersued claiming that TGS misrepresented their finances, creating difficulties post-acquisition. 

Greenwood was founded in 2020, in the wake of the Black Lives Matter protests over the murder of George Floyd. The name, Greenwood, was chosen to pay homage to a Black town destroyed in 1921 in Tulsa, Oklahoma. The fintech boasts an impressive lineup of investors, — tech investor Paul Judge, entertainment executive Ryan Glover, former Atlanta mayor Andrew Young, and the rapper Michael Render, widely recognized as Killer Mike. 

Ryan Glover, according to the Atlanta-Journal Constitution, said “TGS business is not profitable and that TGS’ Los Angeles location lost over $2m last year” and that Greenwood To date, Glover said that Greenwood has paid out more than $40m in cash, stock and assumed liabilities. 

And while the lawsuits were creating headaches for the parties, flurries of anger went off on social media this weekend as announcements of TGS’ co-founder and chief operating officer, T’Keel “TK”  Petersen, leaving the firm coincided with the appointment of a new white chief financial officer, Mike McCloskey. Some members, such as Black TMZ personality, Van Lathan took to Instagram to express their dissatisfaction saying that he specifically joined the group due to its Black ownership.

TGS has since clarified that the announcements were unrelated on their socials.