The founder of messaging app Bolt has proposed returning $37 million worth of company shares in an attempt to resolve an ongoing legal battle with investors. Ryan Breslow, who launched the texting platform in 2021, is currently facing a lawsuit alleging sharing price manipulation and misleading financial projections. According to court documents, Breslow has now put forward a settlement offering to hand back the disputed equity.
The investor claim centers around Bolt’s $85 million Series A fundraising round in early 2022. Dissatisfied backers argue they were provided inflated user numbers and revenue forecasts prior to participating. It is alleged user growth targets were not met as outlined. Legal action was initiated months later seeking damages for alleged security fraud.
Breslow and his attorneys have continued denying any wrongdoing or deception took place. However, to bring closure and avoid a lengthy court process, returning the equity has been tabled. If accepted, it would resolve the matter without either side admitting fault. A spokesperson for the startup commented they hope this solution can now progress talks in a positive direction.
