Monday, February 5, 2024 7:21am
The founder and former chief executive of Revolution Beauty must pay the scandal-hit cosmetics brand nearly £3 million to resolve allegations that he breached his fiduciary duties to the company.
Adam Minto, who resigned as brand chief two years ago, will have to hand over £2.9m, according to an update from the company this morning.
The settlement “does not constitute an admission or admission of liability by either party,” the company said this morning.
Revolution Beauty was suspended for several months in 2022 after an investigation found it had falsely inflated its sales figures.
Last June, the company announced that it planned to take legal action against Minto.
Complicating matters is the fact that Minto still owns more than 15% of the company’s stock.
Today’s announcement draws a line under the dispute, with non-executive chairman Alistair McGeorge telling investors the settlement means the company can “focus on the future”.
He said: “We are very pleased to have reached an agreement with Adam. This, together with the revised payment schedule agreed to in December 2023 for the Medichem acquisition, means we can now focus on the future.”
This follows a number of other scandals the company faced last year, including a shareholder revolt.