Olo, Inc. allegedly misrepresents the health of a partnership with Subway Restaurants
ONTARIO, California., November 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 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, 2022to seek appointment as lead plaintiff in the action.
Olo used a single key growth metric – active locations – to claim their business was growing. Olo provides software to restaurants to help with online ordering and coordination of food delivery. On February 12, 2020, Olo announced a partnership with Subway Restaurants to enable more than 20,000 US-based restaurants to manage digital orders from third-party entities such as Uber Eats or DoorDash. Olo then went public through an IPO in March 2021offering its shares to $25 per share and opening of markets to $32 per share.
However, Olo allegedly made false and/or misleading statements and/or failed to disclose that Subway chose to terminate its contract with Olo, stopping Olo’s key growth measure in its tracks despite Olo’s claims that which they were growing. Due to this slow growth and false/misleading statements, Olo investors suffered significant losses once the truth was revealed.
On August 11, 2022Olo revealed that 2,500 Subway locations have begun integrating directly with third-party marketplaces and that the remaining 15,000 Subway locations will be removed from Olo’s active locations during Q4 2022 and Q1 2023. On this news, The price of Olo’s common stock fell about 36%, which hurt investors significantly.
MLG Partner and Senior Counsel in 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 their stock price and reputation by withholding information. We hope to hold Olo accountable for its poor decisions in this matter.”
About the Principal Applicant Process : The Private Securities Litigation Reform Act of 1995 allows any investor who has purchased or otherwise acquired Centessa ADSs in accordance with and/or traceable to the offering documents issued in connection with the IPO and/or Centessa securities during the class action period to seek appointment as lead plaintiff. The principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class which is also typical and adequate of the putative class. The principal plaintiff is acting on behalf of all other class members in leading the Centessa class action. The lead plaintiff may select a law firm of their choice to litigate the Centessa class action. An investor’s ability to share in any potential future recoupment does not depend on their status as lead plaintiff in the Centessa class action.
About MLG’s Securities Litigation Practice: MLG’s securities litigation attorneys represent investors who have been harmed by frauds, scams and schemes. Our team has many years of experience handling claims on behalf of investors and is seeking all avenues of compensation to maximize our clients’ recovery as they navigate this tumultuous time. With hard-hitting tactics and dedicated legal professionals protecting the interests of our clients, 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 long history of success for its clients, including a $203 million verdict against Wells Fargo Bank, a collection of over $1 billion for its clients, and over 100 emergency cases with a recovery of a million dollars or more. MLG has 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 has become the largest consumer advocacy firm in the Inland Empire. Visit mccunewright.com for more information.
View original content to download multimedia: https://www.prnewswire.com/news-releases/national-securities-law-firm-investigating-olo-inc-over-alleged-falsemisleading-statements-regarding-business-partnerships -301670893.html
SOURCE McCune Law Group, McCune Wright Arevalo Vercoski Kusel Weck Brandt, APC