After Employer.com acquired the bankrupt accounting startup Bench in a fire-sale deal late last year, CEO Jesse Tinsley publicly assured customers that their prepaid services would be honored. In a LinkedIn post and a conversation with founder and investor Julian Weisser, Tinsley emphasized that Employer.com would uphold past commitments.
“We’re honoring all prepaid Bench services even though we will not have the revenue from that directly ourselves,” Tinsley stated.
However, some Bench customers now claim they are being charged again to access tax returns and bookkeeping services they previously paid for. A lawsuit filed Tuesday by Bench customer Qorum alleges that despite prepaying for its 2023 tax return under Bench’s previous ownership, the company was still required to pay again to obtain the document.
Legal Dispute Over Prepaid Services
The lawsuit accuses Tinsley of making “negligent misrepresentations” by falsely asserting that Employer.com would honor prepaid services. One anonymous customer expressed shock upon learning they had to renew their subscription to access financial records paid for two years ago. According to communications reviewed by TechCrunch, a Bench representative stated that “Bench 2.0” was not responsible for prior commitments, and Employer.com could not complete unpaid work.
Employer.com’s Chief Marketing Officer, Matt Charney, strongly denied the allegations, insisting that the company has upheld its commitment to honoring prepaid services. He also stated that Qorum’s 2023 tax return was delivered without additional charges. However, Qorum’s founder, Andrew Pietra, countered this claim, saying that he was required to continue his subscription to retrieve the document.
Bench’s Financial Struggles and Employer.com Acquisition
Bench, under its previous leadership, had exhausted $135 million in funding while attempting to automate bookkeeping with artificial intelligence. This strategy backfired, leading to significant delays and a backlog of unfinished books, former employees revealed.
Many Bench customers reported receiving consent notices from Employer.com that, when clicked, seemingly waived their right to refunds for prepaid services. When Bench suddenly shut down on December 26, many accounting books and tax returns remained incomplete.
Employer.com moved swiftly, announcing its acquisition of the Canadian fintech startup less than 72 hours after the closure. Bankruptcy filings in Canada reveal that the purchase price was $9 million.
Bench’s downfall stemmed from a liquidity crisis after its primary creditor, the National Bank of Canada, refused to extend an additional $7.7 million in December 2024. By then, the bank had already provided $51 million in credit to the struggling company. Ironically, the publicity surrounding Bench’s abrupt closure ultimately led to its acquisition, as previous attempts to find a buyer had failed, according to bankruptcy filings.
As the legal dispute unfolds, Bench customers continue to seek clarity on whether Employer.com will truly stand by its pledge to honor prepaid services or if the acquisition will leave them footing the bill once again.
