Shares of Revolution Beauty Group PLC (GB:REVB) soared after the company announced its dispute settlement with its former shareholder, Chrysalis Investments (GB:CHRY). According to the company statement, Revolution Beauty and Chrysalis have agreed to a private settlement, with neither party accepting responsibility for the dispute. Following the announcement, REVB stock surged 30% as of writing.
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Revolution Beauty is a UK-based beauty brand offering a range of makeup, skincare, and hair care products. Meanwhile, Chrysalis Investments, formerly known as Merian Chrysalis, is an investment trust that focuses on investing in a diverse portfolio of private companies across the UK and Europe.
Revolution Beauty Settles Chrysalis Dispute
As part of the settlement, Chrysalis will not pursue any further claims against Revolution Beauty. The company has agreed to pay Chrysalis a small, non-significant amount, which will not affect its financial standing or cash flow.
Revolution Beauty had earlier received a pre-action letter and an additional letter from Chrysalis’ legal team, which included draft claims regarding certain allegations made by Chrysalis. These claims were strongly disputed by Revolution Beauty. Chrysalis did not proceed with, nor has it filed, any formal claim with the court.
Chrysalis’ claim was based on Revolution’s alleged misstatements and omissions of material information during Chrysalis’s ownership. Chrysalis purchased £45 million of Revolution shares in July 2021. However, it faced significant losses, selling its stake for just £5.7 million in late 2022.