Chris Gray has initiated legal action against Sallie Mae, claiming wrongful termination and alleging improper sale of user data from his scholarship search platform, Scholly. Gray contends that Sallie Mae has marketed personal information collected by the app, which includes sensitive data on minors, without adequately informing users. This lawsuit, filed in Delaware Superior Court, follows his acquisition of Scholly by Sallie Mae in 2023.
After co-founding Scholly a decade ago, Gray gained attention on Shark Tank, attracting investors like Daymond John and Lori Greiner. The acquisition positioned him as a notable figure among Black fintech entrepreneurs. However, following the deal, he claims Sallie Mae laid off his team and reneged on commitments regarding user data privacy. Gray was reportedly dismissed after raising concerns about these issues.
In his lawsuit, Gray seeks back pay, punitive damages, and legal expenses. He argues that, prior to the sale, he believed federal regulations would prevent Sallie Mae from disclosing sensitive user information. Now, he asserts that the company circumvented these protections by transferring Scholly into a subsidiary that sells data to third parties.