The former CEO and co-founder of Revolution Beauty has agreed to pay a settlement of £2.9 million to the cosmetics brand.

Revolution, which floated in July 2021 with valuation of almost £500m but is worth around £94m today, had alleged that Minto breached his fiduciary duties to the company.

Minto will pay Revolution in six annual instalments, with the first payment of £483,333.35 due on 28th March 2024.

No admission or acceptance of liability has been made by either party.

After Revolution failed to file its FY22 accounts and concerns were raised by auditors BDO over the state of its books, its shares were suspended from trading on 1st September 2022. An independent investigation then found the founders had made personal loans or other investments worth £1m without the board’s knowledge and that sales had been overstated by £9m. 

It also criticised the terms of the acquisition of  haircare and skincare products manufacturer Medichem, owned by Minto’s fellow co-founder Tom Allsworth. The report led to the resignation of Allsworth as executive chair and Minto as CEO.

In December, Allsworth agreed an amended timetable with Revolution for deferred payments owed to him for his stake in Medichem.

“We are very pleased to have reached an agreement with Adam,” said Alistair McGeorge, non-executive chairman. “This, together with the revised payment schedule agreed in December 2023 for the acquisition of Medichem, means we can now focus on the future.”

On Friday Revolution confirmed it had received a pre-action claim from one-time shareholder Chrysalis Investments Ltd, which accused the cosmetics retailer of “negligent misstatement and/or misrepresentation”.

Last year fast fashion giant Boohoo – a shareholder in Revolution – effectively forced a further boardroom shakeup at the company in a chaotic series of events.

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