Revolution Beauty said on Monday that co-founder and former CEO Adam Minto would pay £2.9 million ($3.66 million) as part of a settlement deal to resolve accounting issues that led to the delay of the group’s 2022 results.
Minto, who holds a 15.34 percent stake in the British makeup and skin care retailer, left the company in 2022 after an independent investigation into the company’s accounts.
The company had said it was looking to recover “material sums” in related costs, alleging that Minto breached fiduciary and other duties.
Shares in Revolution Beauty were up 3.4 percent at 30.50 pence in early trade on Monday.
The investigation had found personal loans made by Minto and former chairman Tom Allsworth to an employee and senior directors of the group as well as some distributors.
It also flagged issues with the firm’s acquisition of Medichem in October 2021 for £26 million, of which only £7 million was paid with £19 million still overdue, the company said last year.
“Having considered its options and legal advice received, the board of directors believe this is a fair settlement for the company,” Revolution Beauty said in a statement.
Minto has never commented on the matter. On Monday he could not be reached for comment via his LinkedIn account.
As part of the settlement, there was no admission or acceptance of liability by either party, the company added.
Revolution Beauty’s shares were suspended in September 2022 until June 2023. They have risen more than 50 percent since the suspension was lifted and are back at levels seen just before the suspension.
Revolution Beauty CFO to Step Down; Co-Founder Agrees Settlement
Chief financial officer Elizabeth Lake will exit the company December 31, the British beauty company said.