After Employer.com obtained bankrupt accounting startup Bench in a fire-sale overdue ultimate 12 months, CEO Jesse Tinsley pledged on LinkedIn and in different places to honor previous buyer bills.
“We’re honoring all pay as you go Bench services and products even if we can now not have the income from that without delay ourselves,” Tinsley stated in an interview with founder and investor Julian Weisser.
However some Bench consumers say they’re being charged to get books or tax returns they prior to now paid for.
A lawsuit filed on Tuesday by way of Bench buyer Qorum claims that Bench required it to pay to get its 2023 tax go back, regardless of having already paid for the carrier beneath Bench’s earlier homeowners.
“Defendant Jesse Tinsley made negligent misrepresentations when he falsely said that Employer.com would honor pay as you go Bench services and products,” the lawsuit alleges.
Every other buyer, who asked anonymity, was once stunned to be told they had to renew their subscription to get accounting books finished once they paid for that carrier two years in the past, in keeping with correspondence noticed by way of Techmim.
Once they wondered this, a Bench consultant informed them that “Bench 2.0” has no association with prior duties and that Employer.com couldn’t tackle unpaid paintings.
Employer.com spokesperson Matt Charney strongly disputes that Bench is charging for prior to now paid paintings. “We’ve got been, and are honoring pre-paid services and products for our consumers,” he stated.
Charney additionally stated it delivered that tax 2023 go back to Qorum with out requiring further cost. However Qorum’s founder Andrew Pietra informed Techmim he was once required to proceed his subscription to get the go back within the first position.
Underneath its earlier possession, Bench burned thru $135 million and struggled to get AI to switch human bookkeepers. That resulted in lengthy delays and large piles of books that also had to be finished, in keeping with former workers.
A couple of Bench consumers prior to now informed Techmim that Employer.com had additionally despatched them notices meant to get them to click on on a consent button that had them foregoing refunds on pay as you go services and products.
Many books and returns remained incomplete when Bench rapidly close down on December 26 ultimate 12 months. Employer.com, a U.S. corporate, introduced plans to shop for the Canadian fintech lower than 72 hours later.
The fintech’s abrupt cave in was once brought about by way of a loss of liquidity after its primary creditor, the Nationwide Financial institution of Canada, declined to lend it an extra $7.7 million in December 2024. The NBC had already equipped $51 million USD in credit score to the startup, in keeping with earlier filings.
Mockingly, it’s the inside track of Bench’s unexpected shutdown that resulted in its rescue. The corporate had prior to now shopped itself round however did not discover a severe purchaser, the filings observe.
accounting,Unique,Fintech
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