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Payment Startup Bolt Sued by Its Most Prominent Customer

Forever 21 parent ABG said the one-click checkout platform had “utterly failed” to deliver on promised tech capabilities. 

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Bolt Financial Inc., 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.

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.