$100M Suit Against Envestnet Heads to Jury Trial

By Melanie Waddell

News September 27, 2024 at 01:03 PM

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A $100 million lawsuit brought by the fintech platform provider FinancialApps against the wealth management company Envestnet for trade secret misappropriation, tortious interference and unfair competition is headed to a jury trial in Delaware Federal Court.

Envestnet's acquisition by Bain Capital in a $4.5 billion deal was approved by shareholders earlier this week.

FinancialApps' case stretches back to 2019, when it sued Envestnet and Yodlee, accusing them of misappropriating FinancialApps' proprietary software platform.

Envestnet began exploring a sale of Yodlee in December 2023.

On Sept. 26, 2024, Judge Jennifer Hall of the U.S. District Court for the District of Delaware issued two opinions adopting, over Envestnet's objections, reports and recommendations by Magistrate Judge Christopher Burke dismissing Envestnet's defamation counterclaim against FinancialApps and denying Envestnet's motion for summary judgment on FinancialApps' claims.

"We are pleased with the Court's well-reasoned opinions, and look forward to vindicating FinancialApps's rights at trial," lead trial counsel for FinancialApps, Marc Kasowitz of Kasowitz Benson Torres LLP, said in a statement.

A spokesperson for Envestnet said Friday that the Envestnet does not comment on pending litigation.

Credit: Chris Nicholls/ALM; Adobe Stock

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