Bolt, one of the largest payments companies in the United States, announced that it has resolved a long-running dispute by buying out the shares of its investor Activant Capital. Activant had filed a lawsuit against Bolt founder and CEO Ryan Breslow, accusing him of adding $30 million to the company’s balance sheet through a personal loan and firing board members who demanded repayment.
Bolt said the lawsuit was settled after it acquired Activant Capital’s stake in the company. According to the official statement, Activant will no longer hold any stake in Bolt going forward. While this settlement ends one of the major legal battles, Bolt still has to deal with the fallout from other legal cases.
The company is embroiled in ongoing litigation that is attempting to force existing shareholders to buy additional shares at a higher valuation based on a term sheet with an unnamed investor. However, investors have objected to that proposal and some are seeking to block the deal. Bolt also settled a separate lawsuit filed by one of its major customers, Fanatics, earlier this week.
Despite resolving some legal issues, Bolt continues to face challenges related to disagreements with shareholders over business decisions. As one of the most prominent fintech startups, how the company handles ongoing conflicts could impact investor confidence. With the rapid growth of digital payments, Bolt’s ability to mitigate controversies will be crucial to its long-term position in the highly competitive fintech sector.