Former billionaire and founder of payments unicorn Bolt, Ryan Breslow, has proposed a settlement with investor Activant Capital, bringing an end to a lawsuit in which Breslow was accused of saddling the company with $30 million in personal debt and removing board members who pushed him to repay it. Activant sued Breslow last July after he defaulted on a personal loan secured by the company’s funds and removed several board members, leading to accusations of a hostile takeover orchestrated by Breslow.
Activant had maintained that Breslow’s actions were aimed at replacing the previous board with individuals who would do his bidding, accusing him of breaching his fiduciary duties, while Breslow defended his actions by claiming the new directors brought fresh perspectives. Breslow, once a rising star in Silicon Valley, launched Bolt in 2018, attracting large investments and reaching an $11 billion valuation. However, his tenure has been marred by legal battles, layoffs, and his departure as CEO at the age of 30.
According to the settlement plan filed by Activant, Breslow will cancel over 13 million common shares owned by him, valued at over $37 million. These shares were retitled to Bolt as part of a previous tender offer and were returned by Breslow to resolve his loan and expenses. Despite this cancellation, it is likely that Breslow will retain control of the board, with Activant selling all its shares back to the company as part of the settlement. However, Forbes estimates that Breslow’s net worth has been significantly reduced as a result.
Separately, Bolt is facing a lawsuit from sports apparel giant Fanatics, who allege that the company misrepresented their relationship while reneging on a contract. Additionally, the company recently saw a change in leadership, with the former CEO Maju Kuruvilla leaving and being replaced by Justin Grooms. Breslow, who has co-founded multiple startups since Bolt, remains tight-lipped about his future plans, including ventures such as the wellness platform Love.com, the equity lending platform Prism, and his venture capital fund Family.
The settlement with Activant marks the potential end of a tumultuous period for Bolt and Breslow, as they seek to resolve the legal disputes and reposition the company for future growth. The implications of the settlement on Breslow’s control of the company and his financial standing remain to be seen, as Bolt continues to navigate challenges in the competitive payments industry and address allegations from major clients. Despite the setbacks, Breslow’s entrepreneurial spirit and track record of launching successful ventures suggest that he may still have a role to play in the tech industry in the years to come.
