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Revolution Beauty has entered into a confidential settlement with its former major shareholder Chrysalis Investments over legal claims levied against the cosmetics group.
The group has agreed to pay Chrysalis a “non-material sum”, which is less than 1% of the former shareholder’s stock market value. The amount, however, was not disclosed.
According to Revolution, it had reached the agreement without any admission of liability from either firm, and Chrysalis will not be taking any legal claim forward.
As previously revealed on 2 February and 22 April 2024, Chrysalis had threatened to take legal action against Revolution Beauty, with potential claims for more than £45m.
The claims were “strongly” contested by Revolution, and Chrysalis did not subsequently file any claim with the court.
Chrysalis first bought shares in the cosmetics group when it joined the London Stock Exchange in July 2021 for more than £40m, before selling its holding in late 2022 for approximately £5.7m – a fraction of its initial investment.
In 2022, Revolution experienced a crisis after its auditors refused to sign off on its accounts for the previous year, which caused its shares to fall considerably. It also led to an investigation into the business, and its shares being suspended from the stock exchange.
Under its new CEO Lauren Brindley, Revolution Beauty has seen “encouraging progress” in its revamp plan, with sales of its “core” ranges rising by 6% overall in the half-year to 31 August 2024, with growth of these products picking up to 16% in the second quarter.
