Revolution Beauty settles legal claim with disgruntled former shareholder
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Revolution Beauty has agreed a settlement with disgruntled former major shareholder Chrysalis Investments over legal claims against the troubled cosmetics brand. Revolution has agreed to pay Chrysalis a “non-material sum”, which is less than 1% of Chrysalis’s stock market value, according to the investor, but the amount was not disclosed.
Revolution – which sells make-up, skincare, hair and body products online and through concessions – said the “confidential” settlement was reached without any admission of liability from either firm and that Chrysalis will not be taking any legal claim forward.
Chrysalis, which invests in public and private companies, had said earlier this year it would take legal action against Revolution Beauty, with potential claims for more than £45 million. It bought shares in Revolution Beauty when it floated in July 2021 for more than £40 million before selling its holding in late 2022 for about £5.7 million – a fraction of its initial investment.
Revolution Beauty was thrown into crisis in 2022 when its auditors refused to sign off on its accounts for the previous year, with shares in the firm sent tumbling. It led to an investigation into the business and its shares being suspended from the London Stock Exchange.
Meanwhile, Revolution also became embroiled in a battle with Boohoo, which owns more than a quarter of the company’s shares, over demands to replace its leadership team. The troubles culminated in the resignation of its co-founder, Adam Minto, as well as former chief executive Bob Holt and chairman Derek Zissman.
