Bolt Co-Founder Pulled Strings on Unusual Stock Buyback, Suit Alleges

When one-click checkout startup Bolt told investors it would buy back their shares at what amounted to a 97% discount on the company’s late 2021 fundraising, it wasn’t clear why the company would make such an unusual move. After all, Bolt was burning cash as revenue flatlined. A new lawsuit may provide an answer.

Bolt co-founder Ryan Breslow, who stepped down as CEO two years ago, masterminded the lowball offer in order to maintain control over the company, according to a lawsuit brought by an investor. Activant Capital, which co-led Bolt’s $68 million Series B funding in 2019, claims that Breslow could force the company to offer to buy back investors’ shares because he holds a controlling stake in the startup, according to an April complaint filed with the Delaware Court of Chancery.