As previously announced, Chrysalis (CHRY) continues to pursue legal action against Revolution Beauty Group based on misstatements and material omissions made by its management when CHRY originally invested in the company. In January 2024, following a letter of claim from CHRY, Revolution Beauty requested further time to formulate a response as the initial December deadline had passed. On 2 February 2024, the company confirmed it had received a pre-action letter from Chrysalis while also confirming it had not commenced formal legal proceedings. As background, CHRY had invested £45m in the company back in July 2021, eventually selling its stake in an off market transaction of around £5m in FY2023.
Revolution Beauty has, however, announced an update relating to a dispute with Adam Minto, the group’s co-founder and former CEO that led to the delay of the audit of its FY22 results and the suspension of trading of its shares during Adam Minto’s time as CEO, with no admission or acceptance of liability by either party. On 2 February 2024, both parties agreed to a full and final settlement which will see Adam Minto pay Revolution Beauty a settlement sum of £2.9m.
CHRY : Chrysalis allegations against Revolution Beauty remain unresolved