After acquiring bankrupt accounting startup Bench in a fire sale late last year, Employer.com's CEO Jesse Tinsley publicly pledged to honor past customer payments. However, some Bench customers are now claiming that they're being charged to access books or tax returns they previously paid for, contradicting Tinsley's promise.

A lawsuit filed on Tuesday by Bench customer Qorum alleges that Bench required it to pay to get its 2023 tax return, despite having already paid for the service under Bench's previous owners. The lawsuit claims that Tinsley made "negligent misrepresentations" when he falsely stated that Employer.com would honor prepaid Bench services.

Another customer, who requested anonymity, shared correspondence with TechCrunch showing that they were told to renew their subscription to get accounting books completed, despite having paid for that service two years ago. When they questioned this, a Bench representative claimed that "Bench 2.0" has no affiliation with prior obligations and that Employer.com couldn't take on unpaid work.

Employer.com's CMO Matt Charney strongly disputes the allegations, stating that "We have been, and are honoring pre-paid services for our customers." Charney also claimed that Employer.com delivered Qorum's 2023 tax return without requiring additional payment. However, Qorum's founder Andrew Pietra countered that he was required to continue his subscription to get the return in the first place.

The controversy surrounding Employer.com's acquisition of Bench is not new. Under its previous ownership, Bench struggled to replace human bookkeepers with AI, leading to long delays and incomplete books. The company's abrupt shutdown on December 26 last year was caused by a lack of liquidity after its main creditor, the National Bank of Canada, declined to lend it an additional $7.7 million in December 2024.

Multiple Bench customers previously told TechCrunch that Employer.com had sent them notices intended to get them to click on a consent button, which would have them foregoing refunds on prepaid services. The sudden shutdown of Bench led to its rescue, as the company had previously shopped itself around but failed to find a serious buyer.

The implications of this controversy are far-reaching, as it raises questions about the accountability of companies acquiring distressed startups. If Employer.com is found to be reneging on its pledge to honor prepaid Bench services, it could damage customer trust and have long-term consequences for the company's reputation.

As the situation unfolds, it remains to be seen how Employer.com will respond to the allegations and whether it will take steps to rectify the situation. One thing is clear, however: the onus is on Employer.com to uphold its public commitments and ensure that customers are not left in the lurch.