Payment Startup Bolt Sued by Its Most Prominent Customer

Bolt, the payments startup known for its founder's inflammatory Twitter threads claiming Silicon Valley is run by "mob bosses," is being sued by its most prominent customer. From a report: The complaint by Authentic Brands Group alleges that Bolt not only failed to deliver promised technology but that during Bolt's integration with Forever 21, the clothier lost out on more than $150 million in online sales. The complaint also states that Bolt raised funding at increasingly high valuations by "consistently overstating" the nature of its integration with ABG's brands to suggest it had more customers than it did and to convince investors to bankroll additional growth for the startup. Because Bolt's business relies on having a large network of consumers, the allegations create major new uncertainty for the controversial payments startup, which investors most recently valued at $11 billion. In a filing, Bolt responded to the complaint saying that ABG's claims are without merit, and are "a transparent attempt" to renegotiate the terms of the companies' agreements.

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