The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Olo Inc. (“Olo” or the “Company”) (NYSE: OLO) securities between August 11, 2021 through August 11, 2022 (the “Class Period”). Investors have until November 28, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Olo develops cloud-based, on-demand commerce platforms for multi-location restaurant brands.
On August 11, 2022, Olo announced its second quarter results and outlook. The Company’s net loss for the second quarter of fiscal year 2022 was $11.7 million, or $0.07 per share, compared to a net loss of $2.4 million, or $0.02 per share, a year ago. During Olo’s quarterly earnings call with analysts, the Company disclosed that Subway franchises (approximately 15,000 locations) have begun the process of replacing Olo’s Rails product with a homegrown solution. During the call, the Company stated that it expects “Subway’s direct marketplace integration to continue with the balance of their locations being removed from our total active location count in the fourth quarter of this year or the first quarter of 2023.” On this news, the price of Olo shares declined by $4.73 per share, or approximately 36.41%, from $12.99 per share to close at $8.26 on August 12, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Subway was ending its contract with Olo; and (2) Olo’s key business metric – active locations – could not continue to grow as Defendants predicted due to the loss of Subway’s business.
If you purchased or otherwise acquired Olo securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.