Forever 21 owner Authentic Brands Group (ABG) and payment technology company Bolt said they are continuing their partnership after settling a lawsuit filed by ABG against Bolt, according to a Wednesday, July 6, press release.
With the lawsuit dismissed, the two companies will explore the possibility of extending Bolt’s technology to other ABG brands, the statement said.
ABG sued Bolt in April, claiming the payments company failed to deliver its technology, costing ABG $150 million in sales.
Read more: Authentic Brands sues Bolt, claiming $150 million in lost sales
The lawsuit also claimed that Bolt raised funds at increasingly high valuations by “constantly overestimating” the scope of its integration with ABG’s brands to inflate its customer base and attract more investment.
“Bolt completely failed to deliver the technological capabilities it claimed to possess,” ABG said in the lawsuit, calling the integration with Forever 21’s mobile app “disastrous” and alleging it caused a significant decrease in purchases.
Thanks to these issues, only two of the more than 50 brands in the ABG stable – Forever 21 and Lucky – have used the software, according to the suit.
Bolt responded by saying ABG’s lawsuit was baseless, calling it a “transparent attempt” to broker his deal.
Both companies appeared to have buried the hatchet on Wednesday.
“Today marks a new chapter in our partnership with ABG, and I have never felt more confident – together, the future is ours,” Bolt CEO Maju Kuruvilla said in Wednesday’s press release. .
ABG Founder, Chairman and CEO, Jamie Salter, said in the statement that his company chose Bolt as part of its tradition of “working with the best partners to create a sustainable and scalable business focused on… ‘digital innovation and e-commerce’.
Bolt said in May he was going to downsize, with Kuruvilla telling employees it was “no secret” that market conditions in his industry had changed.
See more : FinTech Startup Bolt Financial Plans Layoffs
“In an effort to ensure Bolt has his own destiny, the management team and I have made the decision to secure our financial position,” he said at the time.