Olo, Inc. Allegedly Misrepresented the Health of a Partnership with Subway Restaurants
ONTARIO, Calif., Nov. 7, 2022 /PRNewswire/ -- McCune law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC (MLG) – a national law firm specializing in Securities Litigation, Commercial Litigation, and Class Actions - informs investors that a class action lawsuit has been filed on behalf of purchasers of Olo Inc. (NYSE: OLO) ("Olo" or the "Company") Class A common stock between August 11, 2021 and August 11, 2022, both dates inclusive (the "Class Period"). Investors have until November 28, 2022, to move for appointment as lead plaintiff in the action.
Olo utilized a single key growth metric – active locations – to allegedly claim their company was growing. 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 to enable more than 20,000 U.S.-based restaurants to handle digital orders from third-party entities such as Uber Eats or DoorDash. Olo then went public by an IPO in March 2021, offering its shares at $25 per share and opening trading at $32 per share.
However, Olo allegedly made false and/or misleading statements and/or failed to disclose that Subway had chosen to end its contract with Olo, stopping Olo's key growth metric in its tracks despite Olo's claims that they were experiencing growth. As a result of this stunted growth and these false/misleading statements, Olo's investors suffered major losses once the truth was revealed.
On August 11, 2022, Olo revealed that 2,500 Subway locations had begun to directly integrate with third-party marketplaces and the remaining 15,00 Subway locations would be removed from Olo's active locations in the fourth quarter of 2022 and the first quarter of 2023. On this news, the price of Olo common shares fell by approximately 36%, significantly damaging investors.
MLG Partner and lead attorney of the firm's Securities Litigation Practice Group Elaine S. Kusel remarks, "Our Practice Group is designed to protect investors from companies that attempt to manipulate the price of their shares and their reputation by withholding information. We hope to hold Olo accountable for its poor decisions in this matter."
About the Lead Plaintiff Process : The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or otherwise acquired Centessa ADSs pursuant and/or traceable to the Offering Documents issued in connection with the IPO and/or Centessa securities during the Class Period to seek appointment as lead plaintiff. The lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. The lead plaintiff acts on behalf of all other class members in directing the Centessa class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Centessa class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Centessa class action lawsuit.
About MLG's Securities Litigation Practice:The Securities Litigation attorneys of MLG provide representation for investors who have been wronged through fraud, scams, and schemes. Our team has many years of experience bringing claims on behalf of investors and pursues all avenues of compensation to maximize our clients' recovery as they navigate this tumultuous time. With hard-hitting tactics and dedicated legal professionals protecting our clients' interests, MLG's Securities Litigation Practice Group hopes to hold companies accountable for their unfair or illegal financial practices.
About McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt APC: McCune Law Group has a deep history of success for its clients, including a $203 million verdict against Wells Fargo Bank, recovery of over $1 billion for its clients, and over 100 contingency cases with recovery of $1 million or more. MLG maintains California offices in Ontario, San Bernardino, Calimesa, Palm Desert, and Irvine and supports its national practice with offices in Illinois and New Jersey. For over 30 years, MLG has successfully represented Southern California residents and grown to be the largest Inland Empire consumer rights firm. Visit mccunewright.com for more information.
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SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC
