The lawsuit, brought forward by former Bolt board member Steve Sarracino representing Activant, accused Breslow of adding a $30 million personal loan to Bolt's balance sheet and removing board members who demanded its repayment. The lawsuit alleged that Breslow defaulted on the loan, which was secured by Bolt, and instead of canceling his shares to repay the debt, allowed the funds to be withdrawn from Bolt's accounts. This led to a major overhaul of Bolt's board in March 2023, with Breslow replacing Sarracino, CEO Maju Kuruvilla, and other members with individuals perceived to be more supportive of him, including musician Larrance Dopson, journalist Esther Wojcicki, and crypto investor Brock Pierce. These new board members were later replaced by other allies of Breslow, and Kuruvilla was removed as CEO in March 2024, with Justin Grooms, Bolt’s head of sales, taking over the position.

In parallel with this lawsuit, the U.S. Securities and Exchange Commission (SEC) conducted an investigation into whether Breslow and Bolt violated federal securities laws during a 2021 fundraising round. This investigation was prompted by allegations from investors Brian Reinken and Arjun Sethi, who claimed Breslow misled investors during Bolt's $355 million Series E round, which valued the company at $11 billion. Although the SEC ultimately dropped the investigation, the legal scrutiny impacted Bolt's reputation. According to the proposed settlement seen by TechCrunch, Breslow will return 13,397,270 of his common shares, valued at $37,378,383, to Bolt to settle the loan and associated expenses. Activant, choosing not to participate in a tender offer, will have 18,247,337 of its shares, worth $36,494,674, repurchased by Bolt. Neither Breslow nor representatives from Activant provided comments on the proposed settlement