Shark Tank Startup Founder Sues Sallie Mae Over Termination

Chris Gray, founder of Scholly, is taking legal action against Sallie Mae, the company that acquired his startup, claiming wrongful termination and alleging unauthorized sale of student data through a subsidiary. Sallie Mae has denied all allegations and indicated it will defend itself in court.

Chris Gray, who founded the education technology startup Scholly, has filed a lawsuit against Sallie Mae, the student loan servicing giant that acquired his company. The lawsuit centers on allegations of wrongful termination and claims that Sallie Mae is selling student data through one of its subsidiaries without proper authorization.

Scholly, which gained recognition after appearing on the popular television program Shark Tank, was developed to help students find and apply for scholarships. The platform built a significant user base in the education finance sector before being acquired by Sallie Mae, a major player in student loan management and servicing.

According to Gray's legal filing, his departure from the company following the acquisition was handled improperly, and he is seeking damages for wrongful termination. Additionally, the lawsuit raises concerns about the handling of sensitive student information, alleging that Sallie Mae has leveraged student data for commercial purposes through subsidiary operations.

Sallie Mae has publicly rejected the claims made in the lawsuit. A spokesperson for the company stated that they intend to vigorously defend against the allegations and believe the legal action lacks merit. The company has not provided detailed responses to the specific claims regarding data handling practices.

The dispute highlights ongoing tensions in the fintech and education sector regarding data privacy, user protection, and the integration of acquired startups into larger corporate structures. As the case progresses, it may shed light on how major financial services companies manage sensitive student information and treat founders of acquired companies.