Envestnet, Inc. is an American

financial technology Fintech, a portmanteau of "financial technology", refers to firms using new technology to compete with traditional financial methods in the delivery of financial services. Artificial intelligence, blockchain, cloud computing, and big data are ...

corporation which develops and distributes wealth management technology and products to financial advisors and institutions. Their flagship product is an advisory platform that integrates the services and software used by financial advisors in

wealth management Wealth management (WM) or wealth management advisory (WMA) is an investment advisory service that provides financial management and wealth advisory services to a wide array of clients ranging from affluent to high-net-worth (HNW) and ultra-high- ...

. Envestnet received controversy in 2020 when it was sued in a

class action A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class actio ...

for its collection of consumer financial data. The company filed a motion to dismiss in November of 2020, which was partially granted but partially denied by the court.

History

Envestnet was founded by Jud Bergman in 1999, with Bill Crager as co-founder. The company's

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

of stock filed on the

NYSE The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It is by far the List of stock exchanges, world's largest s ...

and went public on 28 July 2010. It priced at $9; at the bottom of the range of $9–$10. The major underwriters were

Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...

UBS AG UBS Group AG is a multinational Investment banking, investment bank and financial services company founded and based in Switzerland. Co-headquartered in the cities of Zürich and Basel, it maintains a presence in all major financial centres ...

, and

Barclays Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services. Barclays traces ...

. The company raised $63M by selling 7 million shares. In 2012, Envestnet purchased Tamarac for $54 million. In August 2015, Envestnet acquired

Yodlee Yodlee is an American software company that develops an account aggregation service that allows users to see their credit card, bank, investment, email, travel reward accounts, etc. on one screen. Money by Envestnet Yodlee (formerly Yodlee Labs an ...

, a cloud-based data analytics company that provides account aggregation and various financial software, for $660 million. In the same year, Envestnet also acquired online investment platform Upside in February and financial-planning software provider Finance Logix in May. Envestnet stated that their main goal was to drive the acquisitions to provide a full suite of technology offerings for financial advisers. In November 2017, the company introduced a redesigned Tamarac platform. Bergman and his wife, 57-year-old Mary Miller, were killed on October 3, 2019, when a 34-year-old woman crashed her

Volkswagen Volkswagen (),English: , . abbreviated as VW (), is a German Automotive industry, motor vehicle manufacturer headquartered in Wolfsburg, Lower Saxony, Germany. Founded in 1937 by the German Labour Front under the Nazi Party and revived into a ...

into the taxi they were riding on

Highway 101 Highway 101 was an American country music band founded in 1986 in Los Angeles, California. The initial lineup consisted of Paulette Carlson (lead vocals), Jack Daniels (guitar), Curtis Stone (bass guitar, vocals), and Scott "Cactus" Moser (drums) ...

San Francisco San Francisco (; Spanish language, Spanish for "Francis of Assisi, Saint Francis"), officially the City and County of San Francisco, is the commercial, financial, and cultural center of Northern California. The city proper is the List of Ca ...

California California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...

. The woman, 34-year-old Emilie Ross, and the taxi driver, 42-year-old Berkant Ramadan Ahmed, were also killed in the crash. Ross was allegedly under the influence of alcohol and driving on the wrong side of the highway. Crager took over as interim chief executive officer. In December 2019, Envestnet entered an agreement with

JPMorgan Chase JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the ...

to protect Chase's customers' financial data through an API. In March 2020, Crager was named permanent CEO after serving as the interim CEO since October 2019. Envestnet and Yodlee was sued in August of 2020 for collecting users' data without customer knowledge. The plaintiff, Deborah Wesch of New Jersey, accuses Yodlee and Envestnet of failing to "adequately protecting consumer data and have failed to put in place sufficient security protocols in the United States". Envestnet filed a motion to dismiss the lawsuit and successfully rid four of the ten claims, the remainder of which were not dismissed. Judge

Sallie Kim Sallie Kim is currently a U.S. magistrate judge of the United States District Court for the Northern District of California. Education Judge Kim earned her undergraduate degree from Princeton University in 1986 with an A.B. in the Woodrow Wils ...

of the

United States District Court for the Northern District of California The United States District Court for the Northern District of California (in case citations, N.D. Cal.) is the federal United States district court whose jurisdiction comprises the following counties of California: Alameda, Contra Costa, Del ...

also ruled that the plaintiffs' ''alter ego'' claim lacked sufficient evidence to be justified; nevertheless, Judge Kim allowed the six remaining claims to be heard.

References

External links

* Companies based in Chicago Online financial services companies of the United States Financial services companies established in 1999 2010 initial public offerings Companies listed on the New York Stock Exchange Financial technology companies 1999 establishments in Illinois {{US-finance-company-stub