INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Olo Inc. (NYSE: OLO) Shareholders
NEWTOWN, PA, October 4, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of purchasers of Olo Inc. (“Olo” or the “Company”) (NYSE: OLO) common stock between August 11, 2021, and August 11, 2022, inclusive (the “Class Period”).
Investors who purchased Olo common stock during the Class Period may move the U.S. District Court for the Southern District of New York to appoint them as lead plaintiff, no later than November 28, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Investors who wish to discuss the lead plaintiff selection process should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on the Olo Inc. Securities Class Action
Olo, short for “online ordering”, is a New York-based company that develops and provides online ordering and delivery services for restaurants. On February 12, 2020, Olo announced its partnership with Subway Restaurants (“Subway”). This partnership was to enable Subway to handle online orders from third parties like DoorDash or Uber Eats.
The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or material omissions, which failed to disclose that: (i) Subway would be ending its relationship with Olo; (ii) Olo mislead investors as to the Company’s success by citing active location figures that included Subway locations that would soon stop using the Company’s services; (iii) the Company’s key business metric “Active Locations” could not continue to grow, despite defendants’ endorsement, due to the loss of Subway’s business.
On August 11, 2022, after the markets closed, the truth about the state of Olo’s relationship with Subway was revealed when the Company revealed that many Subway locations had begun to directly integrate with third-party marketplaces and the remaining locations would not be included in Olo’s active locations count in the fourth quarter of 2022 and the first quarter of 2023. Olo then admitted and acknowledged that its previously undisclosed Subway departure had been known to insiders throughout the Class Period.
On this news, the price of Olo shares plummeted more than 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. More than $480 million of shareholder value was erased.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492
Email: [email protected]
Web: www.edelson-law.com
Web: www.westopwagetheft.com
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.