In 2023, Chris Gray sold his startup, Scholly, to Sallie Mae, expecting success post-acquisition. He’s now suing the company for wrongful termination and claims it improperly handles user data, including minors’ information. Scholly, co-founded by Gray a decade ago, aimed to help students find unclaimed scholarships. After appearing on Shark Tank, Gray secured investment from Daymond John and Lori Greiner.
As one of the few Black founders to exit through an acquisition, Gray joined Sallie Mae as a VP, planning to expand Scholly. However, he alleges Sallie Mae laid off his team and reneged on promises regarding user data privacy. He accuses the company of using a subsidiary to sell personal data without adequate user notice. Gray believed Sallie Mae, a regulated institution, would protect customer data but claims it circumvented regulations post-acquisition.
Sallie Mae denies these allegations, stating the claims are baseless. The company refuses to comment on ongoing litigation but plans to defend against Gray’s accusations. Gray, raised in Alabama, faced educational barriers, inspiring him to create a better scholarship system. He overcame challenges to secure $1.3 million in scholarships, studied at Drexel University, and co-founded Scholly in 2013.
Scholly aimed to simplify the scholarship application process and grew significantly after Shark Tank. Sallie Mae’s acquisition seemed promising, but Gray alleges issues began a year later. He claims Sallie Mae restructured, laid off Scholly’s team, and dismissed him for raising data privacy concerns. Afterward, Sallie Mae launched “Sallie.com,” allegedly to sell user data outside strict regulations.
Scholly’s data, supposed to be protected, was allegedly used for Backpack Media, targeting young audiences. Gray laments Sallie Mae’s actions yet doesn’t regret making Scholly free for students. Despite past misconduct accusations against related companies, Gray would sell Scholly again but insists on defending legal and ethical standards.