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