Authentic Brands Group (ABG) has reportedly filed a lawsuit against one-click checkout service Bolt, claiming that the solution provider failed to deliver on promises in a contract related to the implementation of the technology, according to Bloomberg, The Business Journals and other media sources. ABG stated in a March 4 filing that it lost out on $150 million in sales while it integrated Bolt’s platform.
The suit is based on Bolt’s promise to provide its AllPass subscription service, which would have worked across all of ABG’s retail brands to allow shoppers to receive free shipping and product discounts. ABG is stating that Bolt developed a “near identical” product called Bolt+ instead, which the retail holding group called “hardly a commercially reasonable move and inconsistent with Bolt’s contractual responsibilities to ABG.”
“Forever 21, in particular, has experienced significant and recurring technical problems caused by Bolt,” said ABG in the filing. “A third ABG brand partner — Brooks Brothers — was forced to abandon, at least temporarily, its integration with Bolt in June 2021 due to Bolt’s action or inaction which resulted, inter alia, in persistent technical product defects.”
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