Chris Gray, founder of the Shark Tank-backed app Scholly, is suing student loan giant Sallie Mae after they bought his company. He claims they wrongfully fired him and are secretly selling student data through a side business.
This is a messy breakup between a young entrepreneur and one of America’s biggest student loan companies. Gray built Scholly to help students find scholarships, appeared on Shark Tank, and eventually sold to Sallie Mae. Now he’s fighting them in court.
When the Deal Goes Bad
Gray says Sallie Mae didn’t just fire him unfairly – he’s accusing them of something much worse. He claims the company is making money by selling personal information about students through a subsidiary company. That’s a serious allegation that could violate privacy laws.
Scholly was supposed to help students pay for college by finding scholarships. If Gray’s claims are true, students using the app might have unknowingly had their personal data sold to third parties. Think names, schools, financial information – the kind of stuff students enter when looking for financial aid.
Sallie Mae isn’t backing down. They’re denying all of Gray’s accusations and say they plan to fight the lawsuit. The company handles millions of student loans, so any scandal about selling student data could hurt their reputation badly.
What Happens Next
This case could expose how companies handle student data after acquisitions. If Gray wins, it might change how ed-tech startups negotiate with big financial companies. Students using Scholly and similar apps will be watching to see if their personal information was really being sold without their knowledge.