Revolution beauty has reached a settlement agreement with co-founder and former CEO Adam Minto.
Minto agreed to the settlement sum of £2.9m, which will be paid in six annual instalments of £483,333.
If the settlement sum instalment is not paid on time, Revolution Beauty said interest will be charged at 8% per year.
The brand’s board of directors stated that, having considered its options and legal advice received, this was a “fair settlement for the company”.
Revolution Beauty originally launched the legal action against Minto in 2023, claiming that he had breached his financial duties to the company.
The business failed to file its final results for the 2022 financial year, resulting in Revolution Beauty’s shares being suspended on 1 September.
"We are very pleased to have reached an agreement with Adam,” said Alistair McGeorge, Non-Executive Chairman of Revolution Beauty.
Co-founder Tom Allsworth was also previously in talks with Revolution Beauty to reach a revised agreement on the terms of its acquisition of Medichem.
The brand stated that it had reached a revised payment schedule with Allsworth in December 2023.
The pharmaceutical company was acquired on 26 October 2021 and was wholly owned by Allsworth.
“This, together with the revised payment schedule agreed in December 2023 for the acquisition of Medichem, means we can now focus on the future,” added McGeorge.
It comes after Revolution Beauty received a pre-action letter from former investor Chrysalis Investments.
The claim is in relation to shares Chrysalis acquired in July 2021 and the subsequent sale of those shares in late 2022, which reportedly saw a 90% drop in value.
Revolution Beauty acknowledged that it had received a pre-action letter from Chrysalis, and added the business had not commenced formal legal proceedings.
The beauty brand added that it will strongly contest the allegations and has been engaging with Chrysalis' advisers.
What’s been going on with Revolution Beauty?
Revolution Beauty was founded by Minto and Tom Allsworth in 2014, but the duo stepped down from their roles in November 2022 amid an accounting probe by accountancy firm BDO into the company.
The brand then fell under the leadership of former Interim Chief Operating Officer Bob Holt and CFO Elizabeth Lake, following Minto and Allsworth’s resignation.
Boohoo, the beauty brand's largest shareholder, also staged a coup in June 2023 to overthrow the new leadership team.
It said at the time that the board was not delivering shareholder value.
Revolution Beauty eventually ended its public spat with the fast fashion retailer in July, with a settlement agreement that saw Holt and Chair Derek Zissman resign.
Lauren Brindley was later appointed as Group CEO in September 2023, and oversees the beauty brand’s global operations and its strategic growth