Revolution Beauty has announced that it has entered into a “confidential settlement” with a former shareholder, Chrysalis Investments Limited.
The beauty retailer has agreed to pay an undisclosed “non-material sum” to Chrysalis and that there will be no legal action going forward.
Chrysalis said last year that it would take legal action against Revolution Beauty. It bought more than £40m of shares in the beauty retailer when it floated in July 2021, before selling its holding in late 2022 for just £5.7m.
Shares in Revolution Beauty rapidly declined in 2022, when its auditors refused to sign off on its accounts for the previous financial year, which quickly led to an investigation and shares being suspended from the London Stock Exchange.
In 2024, Chrysalis claimed that when it bought shares in Revolution Beauty, “the original share purchase was made on the basis that information provided to the company by Revolution prior to the company’s purchase of the shares in Revolution, and during the period in which the shares were held prior to their sale, contained misstatements and material omissions”.
Revolution Beauty denied the allegations and Chrysalis did not file any claim with the court.
In a statement on the London Stock Exchange, the retailer said: “As previously announced on 2 February and 22 April 2024, the Company had received a pre-action letter and a further letter from Chrysalis’ legal advisers, including draft particulars of claim in relation to certain allegations made by Chrysalis, which were strongly contested by the Company. Chrysalis did not subsequently, and has not, filed any claim with the court.
“Revolution Beauty and Chrysalis have now reached a confidential settlement without any admission of liability by either party.
“Chrysalis will not proceed with any claim against the Company. The Company has agreed to pay Chrysalis a non-material sum, which will not have a material impact on the Company’s financial and cash position.”
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