One of the largest payments companies in the US, Bolt, has announced resolving a long-standing legal dispute through buying out the shares of its investor Activant Capital. Activant had filed a lawsuit against Bolt’s founder and then CEO Ryan Breslow alleging that he added $30 million to the company’s balance sheet through a personal loan and removed board members who urged repayment.
Bolt stated that the lawsuit has now been settled after it acquired Activant Capital’s stake in the company. According to the official statement, Activant will no longer hold any interest in Bolt going forward. While this settlement brings closure to one of the major legal battles, Bolt is still dealing with the aftermath of other court cases.
The company is involved in an ongoing issue trying to force existing shareholders to purchase additional shares at an increased valuation based on a termsheet with an unnamed investor. However, investors have raised objections to this proposal and some are looking to block the deal. Bolt has also settled a separate lawsuit filed by one of its major customers, Fanatics, earlier this week.
Despite resolving certain legal matters, Bolt continues to face challenges from disagreements with shareholders on business decisions. As one of the prominent fintech startups, how the company navigates through ongoing disputes could impact investor confidence. With the rapid growth of digital payments, Bolt’s ability to mitigate controversies will be crucial for its long term position in the highly competitive fintech industry.