Scandal-stricken makeup firm Revolution Beauty has said it contests allegations made against it by a former shareholder Chrysalis investments.
Earlier this week, Chrysalis’s board said that the company had “potential claims” for actions of deceit, negligent misstatement and misrepresentation.
The firm took a £40m hit when it offloaded its stake in Revolution Beauty which was suspended following an accounting probe that saw its shares suspended.
It bought Revolution shares in July 2021 for approximately £45m and sold them in late 2022 for approximately £5.7m in total.
Chrysalis said: “The original share purchase was made on the basis that information provided to the Company by Revolution prior to the Company’s purchase of the shares in Revolution, and during the period in which the shares were held prior to their sale, contained misstatements and material omission.”
Revolution said today it “strongly contests” the allegations and has been engaging with Chrysalis’s advisers accordingly.
Today’s development comes as the firm is still negotiating talks with former boss Adam Minto after it was reported he may have to pay £3m to clear allegations that he breached fiduciary duties to the company.
It follows a host of scandals the company has faced over the last year, including a shareholder revolt and being temporally suspended from the stock exchange.