Forever 21 owner Authentic Brands Group (ABG) and checkout technology firm 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 suit dismissed, the two companies will consider the possibility of expanding Bolt’s technology to other ABG brands, the release stated.
ABG sued Bolt in April, claiming the payments company failed to deliver on its technology, costing ABG $150 million in sales.
The lawsuit also claimed Bolt raised money at increasingly high valuations by “consistently overstating” the scope of its integration with ABG’s brands to inflate its number of customers and attract more investments.
“Bolt has utterly failed to deliver on the technological capabilities that it held itself out as possessing,” ABG said in the lawsuit, calling the integration with Forever 21’s mobile app “disastrous” and alleging that it led to significantly fewer purchases.
Thanks to these glitches, just two of ABG’s stable of more than 50 brands — Forever 21 and Lucky — used the software, according to the suit.
Bolt responded by saying the ABG suit was without merit, calling it a “transparent attempt” at negotiating its agreement.
The two companies appeared to have buried the hatchet Wednesday.
“Today marks a new chapter in our partnership with ABG, and I’ve never felt more confident — together the future is ours to win,” said Bolt CEO Maju Kuruvilla in the Wednesday press release.
ABG Founder, Chairman and CEO Jamie Salter said in the release that his company chose Bolt as part of its tradition of “working with best-in-class partners to build a sustainable and scalable business with a laser focus on digital innovation and eCommerce.”
Bolt said in May it was going to cut staff, with Kuruvilla telling employees it was “no secret” that the market conditions in its industry had changed.
“In an effort to ensure Bolt owns its own destiny, the leadership team and I have made the decision to secure our financial position,” he said at the time.