Bolt Financial Inc. and Authentic Brands Group (ABG) have reached settlement over a lawsuit the latter filed in March, according to details published on Wednesday.
ABG, in its legal suit against Bolt, had alleged that the payments startup’s technology did not match marketed capabilities, terming it an utter failure. The company, whose major portfolio brands Forever 21 and Lucky Brand are a key part of the one-click technology Bolt provides, also claimed there had been a misrepresentation of facts regarding the two firms’ partnership.
While Bolt had dismissed the claims, the settlement brings the dispute to an end. As part of the deal, ABG has become a shareholder in Bolt Financial Inc.
New chapter for Bolt and ABG’s partnership
The settlement opens a new page for two companies, Bolt CEO Maju Kuruvilla said in a statement. He noted that the agreement to strengthen their partnership is good for the continued development and use of digital innovation.
Today marks a new chapter in our partnership with ABG and I’ve never felt more confident — together the future is ours to win.”
ABG is Bolt’s largest customer, meaning an end to the lawsuit is more of a positive outcome for the San Francisco-based checkout technology startup.
Over the past few months, Bolt has had to navigate increased turbulence – including the abrupt resignation of its co-founder and then CEO Ryan Breslov and business downturn that resulted in the company laying off nearly 30% of its employees
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