Revolution Beauty is set for a legal battle as a former investor has filed a claim of over £45m as it accuses the business of “deceit”.
Chrysalis Investments bought a £45m stake in the company in July 2021, but sold its shares for £5.7m in 2022 after Revolution’s value collapsed.
It has since accused the beauty group of “deceit, negligent misstatement and/or misrepresentation” at the time of the share purchase.
The investor said on Monday it “has not been satistified with the limited responses received from Revolution Beauty and its legal advisors to date”.
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As a result, it is making a claim of £39m against Revolution, plus a further claim of £6.2m for “consequential losses”.
Revolution Beauty said on Monday it “strongly contests” the claims made against it and will consider a response with its legal advisors.
The beauty group, which has been shrouded by legal battles and shareholder revolts over the past year following an accounting scandal, raised its profit outlook last month as its turnaround plan begins to bear fruit.
Revolution Beauty said it expects to report an adjusted EBITDA of “at least” £12.5m for the year to 29 February, beating previous forecasts of between £11m and £12m.
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