BOCA RATON, Fla., Sept. 26, 2022 (GLOBE NEWSWIRE) -- Saxena White P.A. has filed a securities fraud class action lawsuit (the “Class Action”) in the United States District Court for the Southern District of New York against Olo Inc. (“Olo” or the “Company”) (NYSE: OLO) and certain of its executive officers (collectively, “Defendants”). The Class Action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder on behalf of all persons or entities that purchased Olo Class A common stock between August 11, 2021 and August 11, 2022, inclusive (the “Class Period”), and were damaged thereby (the “Class”). The Class Action filed by Saxena White is captioned: Pompano Beach Police and Firefighters’ Retirement System v. Olo Inc., No. 1:22-cv-08228 (S.D.N.Y.).
Olo provides software to restaurants to assist with online ordering and food-delivery coordination. During the Class Period, the Company’s key business metric demonstrating its growth was its “active locations,” with each active location representing a unique restaurant location using an Olo product.
In February 2020, the Company 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. Throughout the Class Period, Olo touted the growth of its active locations, with Subway accounting for approximately 20% of those locations. By the first quarter of 2022, the Company’s active locations had grown to approximately 82,000 – a 19% increase over the prior year.
The Class Action alleges that, during the Class Period, Defendants misled investors and/or failed to disclose that (1) Subway was ending its contract with Olo; (2) Olo’s key business metric – active locations – could not continue to grow as Defendants touted due to the loss of Subway’s business; and (3) that, as a result of the above, Defendants’ statements about Olo’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
The truth emerged on August 11, 2022, when the Company announced disappointing results for the second quarter of 2022, lowering revenue guidance and reporting that its active location count remained flat at 82,000. The Company explained that it was impacted by the loss of 2,500 Subway locations, due to Subway choosing to implement direct integration with marketplaces, and that the Company expected the remaining Subway locations would also end their contracts with Olo by the fourth quarter of 2022 or first quarter of 2023 – facts Defendants claimed to have incorporated into Olo’s guidance months earlier without informing the market. In response to this news, the price of Olo common stock declined approximately 36%, from a closing price of $12.99 per share on August 11, 2022, to a closing price of $8.26 per share on August 12, 2022.
If you purchased Olo Class A common stock during the Class Period and were damaged thereby, you are a member of the “Class” and may be able to seek appointment as lead plaintiff. If you wish to apply to be lead plaintiff, a motion on your behalf must be filed with the U.S. District Court for the Southern District of New York no later than November 28, 2022. The lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as lead plaintiff to share in any Class recovery in the Class Action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member.
You may contact Lester Hooker (lhooker@saxenawhite.com), an attorney and Director at Saxena White P.A., to discuss your rights regarding the appointment of lead plaintiff or your interest in the Class Action. You also may retain counsel of your choice to represent you in the Class Action.
You may obtain a copy of the Complaint and inquire about actively joining the Class Action at www.saxenawhite.com.
Saxena White P.A., with offices in Florida, New York, California, and Delaware, is a leading national law firm focused on prosecuting securities class actions and other complex litigation on behalf of injured investors. Currently serving as lead counsel in numerous securities fraud class actions nationwide, Saxena White has recovered billions of dollars on behalf of injured investors.
CONTACT INFORMATION
Lester R. Hooker, Esq.
lhooker@saxenawhite.com
Saxena White P.A.
7777 Glades Road, Suite 300
Boca Raton, FL 33434
Tel: (561) 206-6708
Fax: (561) 394-3382
www.saxenawhite.com
