Troubled Payments Startup Bolt Reaches Settlement in Customer Suit

Authentic Brands Group, which owns and licenses brands like Forever 21, has settled its lawsuit against Bolt Financial Inc. The agreement ends months of legal wrangling between the troubled payments startup and its largest active customer, which had claimed that Bolt’s technology was faulty.

ABG was awarded an undisclosed stake in Bolt, the startup said in a statement Wednesday. The companies will continue to work together, with Bolt’s technology powering online checkouts for ABG brands Forever 21 and Lucky Brand. ABG also said it will explore using Bolt’s software for other brands. In the statement, ABG Chairman Jamie Salter called Bolt’s technology “exceptional.”