Atlanta-based companies Greenwood, a digital banking services company founded for black and Latino people, and The Gathering Spot, a networking center and co-working space, announced Monday that they have settled their business disputes.
News of a pact comes a little more than a week after the months-long rift spilled out publicly amid a series of lawsuits. The founders of The Gathering Spot (TGS) accused Greenwood, which had acquired the co-working company last year, of breaching financial commitments.
exploreThe Greenwood, Gathering Spot dispute between the founders opens
“Nobody wins when family fights,” said Ryan Glover, CEO of Greenwood, and Ryan Wilson, CEO of TGS. statement which did not disclose the terms. “We apologize for distracting our communities over the past week as this became a topic of so much public discussion. As we work together to build for our community and our customers, we will continue to maintain the highest standards.”
The dispute began in February, when Wilson and his TGS co-founder, T’Keel “TK” Petersen, sued Greenwood for allegedly withholding payments after they acquired the company.
In June, Greenwood countersued, saying the TGS founders misinterpreted the purchase agreement.
Wilson filed a second lawsuit on July 11 alleging that Greenwood engaged in willful misconduct and withheld a $5 million revenue payment tied to TGS hitting a $15 million revenue goal.
TGS then announced on July 15 that Petersen would step down as the club’s chief operating officer at the end of July. But as part of the settlement, Petersen will remain with the company. Monday’s announcement said TGS “will continue to operate as an independent subsidiary of Greenwood under the leadership of its co-founders, Ryan Wilson and TK Petersen.”
The initial news of Petersen’s pending departure coincided with the news that Greenwood had hired Mike McCloskey as Greenwood’s CFO. Some social media posts highlighted that Petersen is black and McCloskey is white, upsetting some TGS members.
Joey Womack, founder of Atlanta-based Goodie Nation, a tech-focused community of diverse founders and social entrepreneurs, has worked with the founders of Greenwood and TGS. Womack threw one statement on LinkedIn days after Wilson filed his second lawsuit expressing concern about the developments.
“Recent news of leadership changes has hurt, shocked, angered and disappointed many people, including myself,” he wrote. “I’ve seen and heard a lot of speculation, accusations and heated statements over the past few days. It makes me feel like the community that’s been carefully cultivated over the last 12-15 years is fracturing, and that worries me deeply.”
While terms of the deal announced Monday were not disclosed, Greenwood and TGS said they were both “pleased with the outcome and look forward to continuing to champion inclusive community and economic growth.”
Greenwood paid $50 million to acquire TGS in April 2022, according to a transcript of a July court hearing. Half of that amount was in the form of Greenwood stock.
Greenwood was founded in 2020 and its founders include activist and rapper Michael Render, better known as Killer Mike, and former Atlanta mayor Andrew Young. In November, Greenwood secured a $45 million funding round led by investment firm Pendulum, founded by Black. With this funding, the company is now valued at $325 million. In May, Greenwood acquired Kinly, a rival fintech firm that also aimed to serve black customers.
exploreBlack-owned tech firm Greenwood acquires digital banking rival
In addition to Atlanta, TGS also has physical locations in Los Angeles and Washington, DC, and virtual members in New York, Chicago, Charlotte and other cities. TGS members include film director Will Packer and actor/producer Issa Rae. President Joe Biden, basketball star LeBron James and other notable figures have visited TGS locations.
-Freelance reporter Mike Jordan contributed to this report.
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