The dispute between Revolution Beauty Group PLC and former shareholder Chrysalis Investments Ltd ratcheted up on Monday, as Chrysalis said it has issued legal claims for a total of £45.2 million against Revolution Beauty, while Revolution rejected the allegations.

Chrysalis invests in public and private companies, taking a ‘high-conviction’ approach. Its current investments include money-transfer firm Wise PLC and lender Starling Bank. Revolution Beauty is a London-based cosmetics retailer.

Chrysalis said it issued the legal claims to Revolution Beauty on Friday, saying it ‘has not been satisfied with the limited responses received from Revolution Beauty and its legal advisers to date’. It added it ‘considers that it has a strong case and is willing to pursue it’.

Back in February, with its annual results, Chrysalis said it has ‘potential claims’ under the UK financial services & markets act against Revolution Beauty.

Chrysalis bought into the AIM listing in July 2021, purchasing around £45 million worth of shares, and sold its holding in ‘late 2022’ for roughly £5.7 million, so about £40 million off what it initially paid.

‘The original share purchase was made on the basis that information provided to the company by Revolution prior to the company’s purchase of the shares in Revolution, and during the period in which the shares were held prior to their sale, contained misstatements and material omissions,’ Chrysalis claimed at the time.

On Monday, Revolution said it ‘strongly contests the allegations’ and is considering its response to the latest development. However, it also said it ‘will continue to engage with Chrysalis and its advisers’.

Revolution Beauty shares were down 8.7% to 28.22 pence early Monday in London. Chrysalis shares were up 0.1% at 79.15p.

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