NEW YORK, NY / ACCESSWIRE / September 29, 2022 / Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired shares of Olo Inc. ('Olo' or the 'Company') (NYSE: OLO) between August 11, 2021, and August 11, 2022, inclusive (the 'Class Period'). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1934.
Based in New York, New York, Olo provides software to restaurants to assist with online ordering and food-delivery coordination. On February 12, 2020, Olo announced a partnership with Subway® restaurants ('Subway') to enable Subway's more than 20,000 U.S.-based restaurants to handle digital orders from third-party 'marketplaces' such as Uber Eats or DoorDash. Olo, short for 'online ordering,' then went public via an initial public offering ('IPO') in March 2021 as online ordering from restaurants and home-delivery services were enjoying unprecedented popularity due to the COVID-19 pandemic. In its IPO, Olo offered its shares for sale at $25 per share and opened trading at $32 per share.
Throughout the Class Period, the Company highlighted its 'Active Locations' as a 'Key Business Metric' that 'demonstrates the growth and scale of our overall business and reflects our ability to attract, engage, and monetize our customers and [ ] drive revenue.' After the close of markets on August 10, 2021, Olo reported that it ended the second quarter of 2021 with approximately 74,000 active locations, which represented a 30% increase over the same period in the prior year. The Company's reported active locations included approximately 15,000 Subway locations, which eventually represented approximately 20% of the Company's reported active locations. As Olo reported increasing active locations, its stock price soared to trade above $45 per share.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (1) Subway was ending its contract with Olo; and (2) Olo's key business metric - active locations - could not continue to grow as Defendants touted due to the loss of Subway's business.
The true state of Olo's relationship with Subway was revealed after the markets closed on August 11, 2022. That day, the Company reported its results for the second quarter of 2022 and reduced its guidance for full-year 2022. Olo revealed that 2,500 Subway locations had begun to directly integrate with third-party marketplaces and that the remaining 15,000 Subway locations would be removed from the Company's active locations count in the fourth quarter of 2022 and the first quarter of 2023. The Company acknowledged that the previously undisclosed Subway exodus had been known internally throughout the Class Period. Indeed, Chief Financial Officer ('CFO') Peter J. Benevides ('Benevides') instructed analysts that 'when we entered the year, there was an indication that Subway may plan to directly integrate with marketplaces.' On this news, the Company's stock price fell over 36%, to close at $8.26 per share on August 12, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than November 28, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery does not require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased Olo shares, and/or would like to discuss your legal rights and options please visit Olo Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or firstname.lastname@example.org.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal's 'Plaintiffs' Hot List' thirteen times and listed in The Legal 500 for ten consecutive years.
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SOURCE: Bernstein Liebhard LLP
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