Fanatics settles lawsuit with Bolt amid boardroom turmoil

Bolt has settled a lawsuit with Fanatics, which it filed in March 2023, amid significant internal turmoil. The lawsuit arose after Bolt attempted to terminate its partnership with Fanatics, which Fanatics contested, claiming Bolt had financial obligations to fulfill. The settlement suggests that the partnership may continue, as Bolt's current CEO, Justin Grooms, emphasized their commitment to providing services to Fanatics. The lawsuit was heavily redacted, obscuring specific details, including the financial claims made by Fanatics. Reports indicated that Fanatics was seeking $50 million, potentially related to a $12 million fund that Bolt had contributed to for marketing their partnership. This legal dispute unfolded during a challenging period for Bolt, marked by leadership changes and financial struggles. Ryan Breslow, Bolt's founder, was attempting to regain his position as CEO while the company sought to raise $200 million in equity and an additional $250 million in marketing credits. This effort was met with resistance from investors, including BlackRock, who filed a restraining order against Breslow's return. The boardroom drama has been compounded by other legal issues, including a lawsuit from Authentic Brands Group. Despite the ongoing controversies, the resolution of the Fanatics lawsuit may provide some stability for Bolt as it navigates its financial challenges and attempts to restore investor confidence. The outcome of this settlement could influence future partnerships and the company's overall strategy moving forward.