Technology and financial services firm TQL has initiated a formal request for the return of $12.8 million in commission payments made to third-party partners between Q1 2024 and Q3 2025 due to an internal accounting error. The move underscores growing scrutiny over compensation accuracy in complex sales ecosystems.
- TQL seeks repayment of $12.8 million in erroneously paid commissions
- Error stemmed from a flawed software update in January 2024
- 37 partners affected, with individual overpayments up to $2.1 million
- Repayment requests triggered partner pushback and market reaction
- Stock declined 3.2% post-announcement
- Recovery efforts supported by contractual provisions in partnership agreements
TQL, a mid-sized provider of digital transaction platforms, announced this week that it is seeking the recovery of $12.8 million in commissions mistakenly disbursed to partners based on flawed performance tracking systems. The overpayments were identified during a routine internal audit conducted in late December 2025, revealing discrepancies in automated payout algorithms tied to client onboarding metrics. The company confirmed that the error originated from a software update deployed in January 2024, which incorrectly inflated user activation benchmarks. This led to inflated commission calculations across 37 partner accounts, with individual overpayments ranging from $12,400 to $2.1 million. TQL stated that affected partners had received payments without meeting contractual thresholds, violating terms outlined in their service agreements. The repayment request has triggered immediate responses from several partners, some of whom have challenged the retroactive clawback. Industry analysts note that such actions are increasingly common as firms tighten financial controls amid rising regulatory pressure. The situation may also impact TQL’s relationships with key distribution channels, particularly in North America and Western Europe, where most of the affected partners are based. Financial markets reacted cautiously, with TQL’s stock dropping 3.2% in after-hours trading following the announcement. Investors cited concerns over operational oversight and potential reputational risk. Meanwhile, legal teams at TQL are preparing formal notices to initiate recovery proceedings, citing contractual rights under the original partnership agreements.