Revolution Beauty has reached a settlement agreement with its former shareholder Chrysalis Investments.
It follows the investment firm's issue of a draft claim of £45.2m in April 2024, claiming the make-up brand has “deceived” the business.
The firm bought a £45m stake in the affordable cosmetics company in July 2021.
It then sold its shares for £5.7m in 2022 after Revolution Beauty’s value collapsed – resulting in losses.
Chrysalis Investments accused Revolution Beauty of “deceit, negligent misstatement and/or misrepresentation” at the time of its company share purchase.
“[The company] has not been satisfied with the limited responses received from Revolution Beauty and its legal advisers to date,” Chrysalis Investments said in its Stock Exchange notice at the time.
“The company considers that it has a strong case and is willing to pursue it.”
However, Revolution Beauty and Chrysalis have reached a “confidential settlement” without “any admission of liability by either party”.
“Chrysalis will not proceed with any claim against the company,” Revolution Beauty stated.
The fast beauty retailer has also agreed to pay Chrysalis a “non-material sum”, which will not have a “material impact on the company's financial and cash position”.
Revolution Beauty has been plagued by shareholder revolts and legal battles with former CEO Minto over the past year following the accounting scandal.
However, the embattled company recently raised its full-year guidance for 2024 as its recovery plan starts to pay off.
This was supported by its ‘Reigniting the Revolution’ strategy, which helped to bolster sales in 2024.
The strategy is focused on three core pillars to deliver “long-term profitable growth” to become a top five mass beauty player globally.
This also includes plans to hit £1bn in retail brand sales by 2030.