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Founder of Shark Tank-backed startup Scholly sues his acquirer Sallie Mae
Chris Gray, founder of Scholly, is suing Sallie Mae for wrongful termination and data privacy violations after selling his scholarship search startup to the student loan giant. He alleges Sallie Mae is improperly selling user data from Scholly, which was intended to be private, and has retaliated against him for raising concerns about these practices.
Key points
- Gray sold Scholly to Sallie Mae in 2023, believing it would protect student data.
- He became Vice President at Sallie Mae but was later fired after raising concerns about data privacy.
- His lawsuit alleges wrongful termination and selling user data through a non-bank subsidiary.
- Sallie Mae denies all accusations, claiming they are without merit.
Why it matters
- The case reflects ongoing concerns about data privacy in tech and education sectors.
- It mirrors trends in 2025 where platforms are scrutinized for handling sensitive data.
- This lawsuit could impact venture-backed startups, especially those aimed at underserved communities.
Gray's situation highlights significant ethical issues in tech acquisitions, particularly regarding data privacy promises and corporate accountability, emphasizing the necessity for clear regulations in the evolving landscape of fintech and student services.