Saxena White PA files new class action lawsuit alleging securities fraud
BOCA RATON, Fla., Sept. 26, 2022 (GLOBE NEWSWIRE) — Saxena White PA has filed a class action lawsuit alleging securities fraud (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 officers (collectively, the “Defendants”). The class action brings claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 of the US Securities and Exchange Commission promulgated thereunder on behalf of any person or entity who purchased and damaged Class A Olo Common Stock (the “Class”) between August 11, 2021 and August 11, 2022 inclusive (the “Collection Period”). The class action lawsuit filed by Saxena White is titled: Pompano Beach Police and Firefighters’ Retirement System v. Olo Inc.No. 1:22-cv-08228 (SDNY).
Olo provides restaurants with software to help them order online and coordinate food delivery. During the Class Period, the Company’s key business metrics demonstrating its growth were its “active locations,” with each active location representing a unique restaurant location utilizing an Olo product.
In February 2020, the Company announced a partnership with Subway® restaurants (“Subway”) to enable Subway’s more than 20,000 US-based restaurants to fulfill digital orders from third-party “marketplaces” such as Uber Eats or DoorDash . During the class period, Olo promoted growth in its active locations, with Subway accounting for about 20% of those locations. By the first quarter of 2022, the company’s active locations had grown to about 82,000 — a 19% year-over-year increase.
The class action alleges that during the class period, the defendants misled and/or failed to disclose to investors that (1) Subway terminated its contract with Olo; (2) Olo’s key business metric – active locations – couldn’t…
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