Revolution Beauty founder settles claims

THE co-founder of Revolution Beauty has agreed to pay £2.9m to settle claims over his involvement in an accounting scandal, which forced its shares to be suspended for 10 months.

Adam Minto, the former chief executive of Revolution Beauty, will pay £483,333 every year for the next six years as part of the settlement.

Revolution Beauty said the deal was “fair” and meant it could now draw a line under the row with Mr Minto, who is still one of its largest shareholders with a 15pc stake. It said there was no admission or acceptance of liability by either party.

The settlement follows a lengthy wrangle between Mr Minto and the company after it accused him of breaching his contractual, statutory and legal duties after serious issues were discovered in its accounts.

Revolution Beauty shares were suspended in September 2022 after the auditor refused to sign off on its accounts. It called on law firm Macfarlanes to launch an independent investigation during which it was claimed Mr Minto made personal loans to staff as well as loans to distributors which were not disclosed to the board.

Mr Minto, who resigned as chief executive amid the investigation, has not commented on the independent report.

The settlement comes days before Revolution Beauty is due to update investors on its strategy.

It went through a major upheaval last year after its largest shareholder, Boohoo with 27pc, staged a coup and pushed to replace top executives. It has since replaced its chief executive, chief financial officer and chairman.