Brand development company Authentic Brands Group (ABG) has settled and agreed to dismiss its lawsuit against checkout tech start-up Bolt, with both parties agreeing to continue their ongoing partnership.
As part of the dismissal, Bolt, which already provides its services to ABG-owned brands Forever 21 and Lucky Brand, said it will evaluate the possibility of expanding its technology to the group’s wider portfolio of brands in the coming months.
In March, an initial complaint filed by ABG in the US District Court said that Bolt “utterly failed to deliver on the technological capabilities” it had claimed to possess, including its checkout and customer loyalty products.
According to the filing, ABG said Forever 21 had “experienced significant and recurring technical problems” with Bolt products, causing a “material diminution in gross sales”.
However, with the lawsuit now settled, ABG is now set to become “shareholders” in the payment provider, under the new leadership of chief executive officer Maju Kuruvilla, said the group’s CEO, founder and chairman, Jamie Salter, in a release.
Kuruvilla added: “We are a proud partner of ABG and have enjoyed powering one-click check-out for Forever 21 and Lucky Brand. ABG’s commitment to continuing its partnership with Bolt is a testament to their long-term vision of digital innovation and their ethos of identifying best-in-class partners.”