A lawsuit was filed on behalf of investors in Olo Inc. (NYSE:OLO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 10/10/2022 -- The Shareholders Foundation announced that an investor, who purchased shares of Olo Inc. (NYSE: OLO), filed a lawsuit over alleged violations of Federal Securities Laws by Olo Inc..
Investors who purchased shares of Olo Inc. (NYSE: OLO) have certain options and for certain investors are short and strict deadlines running. Deadline: November 28, 2022. NYSE: OLO investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
New York based Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States. Olo Inc. provides software to restaurants to assist with online ordering and food-delivery coordination. Between August 11, 2021 and August 11, 2022, 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, Olo Inc. 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. Between August 11, 2021 and August 11, 2022,, Olo Inc. touted the growth of its active locations, with Subway accounting for approximately 20% of those locations and by the first quarter of 2022, the Company's active locations had grown to approximately 82,000 – a 19% increase over the prior year.
On August 11, 2022, Olo Inc. announced second-quarter results and outlook. The net loss 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. Additionally, per one analyst covering Olo, management disclosed Subway (~15K locations) has begun the process of replacing Olo's Rails product with a homegrown solution (2.5k locations moved in 2Q with the remaining expected in 1Q23.
Shares of Olo Inc. (NYSE: OLO) declined from $14.08 per share on August 4, 2022, to $8.11 per share on August 15, 2022.
The plaintiff claims that between August 11, 2021 and August 11, 2022, the Defendants misled investors and/or failed to disclose that Subway was ending its contract with Olo, that Olo's key business metric – active locations – could not continue to grow as Defendants touted due to the loss of Subway's business, and 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.
Those who purchased shares of Olo Inc. (NYSE: OLO) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.