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Sun 14 Aug 2016 02:42 PM

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Emirates NBD cleared of defrauding US entrepreneur

Los Angeles firm alleged bank stole its technology to launch mobile payment system for migrant workers

Emirates NBD cleared of defrauding US entrepreneur

A US court has ruled that Dubai bank Emirates NBD did not commit fraud and steal technology from one of its former business partners, according to a report in the Los Angeles Times.

LA-based InfoSpan, a payment services provider, sued Emirates NBD for a reported $540 million after their partnership ended.

It was providing a mobile payment system for Emirates NBD, but alleged that the bank ended the partnership in 2009 because it did not want to share revenue and stole InfoSpan’s technology to launch its own service instead.

Emirates NBD denied it stole or ever used InfoSpan’s technology, the newspaper reported. The bank argued that it had cancelled the partnership because InfoSpan failed to produce a working product.

It also claimed InfoSpan had misled the bank into believing it was an established company, not a start-up with little or no track record, according to the newspaper.

InfoSpan had said its mobile payment system, known as SpanCash, would allow migrant workers in the Middle East to send remittances back home via text message.

CEO Farooj Bajwa argued in court that the company had spent $87 million developing the business and technology, and had partnered with Emirates NBD in 2007 to launch the system in the UAE.

However, a federal court in the US ruled in favour of Emirates NBD following a two-week trial. A lawyer for InfoSpan declined to comment, according to LA Times.

Emirates NBD also declined to comment when approached by Arabian Business.

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