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Fizz Alleges Investor Shared Secrets with Rival
10 Jul
Summary
- Fizz accuses investor Jerry Lu of sharing confidential data.
- The data was allegedly shared with rival app Sidechat.
- Fizz and Sidechat compete in the college anonymous forum market.
A protracted legal battle between college social apps Fizz and Sidechat has intensified with new allegations. Fizz has accused venture capitalist Jerry Lu of Maveron of betraying trust during a supposed investment meeting. The lawsuit claims Lu shared Fizz's non-public business strategy, user metrics, and product roadmap with Sidechat, a direct competitor.
Fizz and Sidechat both operate anonymous online forums aimed at college students, leading to fierce competition for user engagement. However, their platforms have faced scrutiny, with the UNC system banning both apps due to concerns over cyberbullying and inappropriate content. Fizz initially filed its lawsuit against Sidechat in 2023, citing several alleged unfair competition tactics.
Lu's alleged involvement surfaced during the legal discovery process. Fizz asserts that Lu acted as a conduit, passing along sensitive information about Fizz's fundraising and business development to Sidechat's owner. Lu later invested in Sidechat's second seed round in October 2023, though discussions with Sidechat reportedly began in 2022. Fizz also claims an acquaintance, Jack Burlinson, shared critical documents, including an investor deck, with Lu, who then forwarded them to Sidechat.
