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Bolt Founder Seeks $37M Share Settlement

Bolt founder Ryan Breslow has offered a settlement to investor Activant Capital this week, potentially resolving lawsuit
May 16, 2024

Bolt founder Ryan Breslow has proposed a settlement this week with investor Activant Capital, potentially resolving a lawsuit brought against him by Activant. The lawsuit, filed in July 2023 in a Delaware court, alleges that Breslow added $30 million to Bolt’s balance sheet in the form of personal debt and removed board members who urged him to repay it.

According to the lawsuit, Breslow defaulted on the $30 million loan, which was secured by Bolt. Instead of canceling shares he owned to repay the debt, he allowed the funds to be removed from Bolt’s accounts. 

In response, Breslow removed several board members, including Steve Sarracino of Activant, who declined to assist in repaying the loan. Sarracino's lawsuit also alleged that neither Breslow nor the newly appointed CEO, Maju Kuruvilla, took appropriate steps to enforce repayment.

Breslow later removed all board members and replaced them with individuals thought to be more sympathetic to his cause. 

Simultaneously, the U.S. Securities and Exchange Commission investigated Bolt and Breslow for potential violations of federal securities laws related to statements made during Bolt's 2021 fundraising efforts. However, this probe was later dropped.

The proposed settlement  suggests that Bolt will cancel 13,397,270 common shares previously owned by Breslow, totaling $37,378,383, to resolve the principal loan, expenses, and interest. In return, Activant will not participate in a tender offer, and Bolt will buy back 18,247,337 Activant shares worth $36,494,674. 

This settlement, if accepted, could bring an end to the legal dispute between Breslow and Activant Capital, offering a resolution to a contentious issue that has plagued Bolt in recent years.

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