Sword Health US lawsuit set for September trial

A US lawsuit against Portuguese unicorn Sword Health is set to go to trial on September 14, in a case that could have significant financial implications for one of Portugal’s best-known startups. The dispute, reported by ECO from court proceedings in California, centres on a claim by US company A2 Academy for 5% of Sword’s equity.

According to the case, the dispute dates back to 2014, when Sword joined a California mentoring and acceleration programme for startups focused on products and services for people aged over 50. As part of that process, Sword signed an agreement that provided for the transfer of 5% of the company’s capital to the programme’s promoters, but those shares were never delivered.

The parties are now arguing in a San Francisco court over whether A2 Academy still has the right to claim those shares or whether the deadline to do so has expired. Sword and founder Virgílio Bento have argued that the claim is time-barred, while A2 Academy says the clock should only have started when it became aware that Sword had not complied with the agreement. The lawsuit was filed in 2024.

The latest procedural step was a third amended complaint adding Sword Health Technologies as a defendant, after which Sword and Bento again asked the judge to dismiss the case without examining the facts. That request was rejected, as had happened with the two earlier versions of the complaint. Neither A2 Academy nor Sword commented on the case.

Based on Sword Health’s latest known valuation of about $4 billion, the 5% stake claimed by A2 Academy could be worth around $200 million if the court rules in its favour. The US company is also seeking damages, plus interest, with the amount to be determined at trial.

Originally published at Eco.pt