Former billionaire Ryan Breslow, founder of payments unicorn Bolt, has proposed a settlement with investor Activant Capital, signaling the end of a lawsuit in which Breslow was accused of saddling the company with $30 million in personal debt. Activant sued Breslow last July in a Delaware court after he defaulted on a personal loan secured by the company’s funds and removed board members who pushed him to repay it. Breslow allowed millions of dollars to be swept from Bolt’s bank account and replaced board members with his friends, leading to allegations of breaching fiduciary duties.
Activant has maintained that Breslow’s actions were a hostile overthrow to install board members who would do his bidding. Breslow argued that the new directors offered different perspectives and networks, dismissing Activant’s claims as “sour grapes.” Breslow’s rise and fall as a young founder in Silicon Valley has become a cautionary tale, with legal battles, personal struggles, an SEC probe, layoffs at Bolt, and his departure as CEO clouding his legacy.
A settlement plan filed by Activant and Breslow includes canceling $37.4 million worth of common shares owned by Breslow, resolving his loan principal and interest, as well as expenses incurred by Bolt. Activant chose not to participate in a previous tender offer but will now sell back its shares to the company for $36.5 million. Breslow is expected to retain board control despite the cancellation of shares, and an independent committee will oversee any future compensation or arrangements involving Breslow.
Bolt is also facing a lawsuit from sports apparel giant Fanatics, alleging that the payments company misrepresented their relationship while reneging on their contract. The departure of CEO Maju Kuruvilla, who replaced Breslow, and subsequent appointment of Justin Grooms as CEO have added to Bolt’s challenges. Breslow, who has co-founded other startups since Bolt, remains silent about his future plans, including ventures in wellness, equity lending, and venture capital investments. Bolt did not respond to requests for comment on the ongoing legal issues and executive changes.
