Olo Securities Settlement
United States District Court, Southern District of New York
Case No. 1:22-cv-08228-JSR
United States District Court, Southern District of New York
Case No. 1:22-cv-08228-JSR
If
you purchased or otherwise acquired Class A common stock of Olo between March
17, 2021 and August 11, 2022, inclusive, you may be eligible to receive a
payment from this settlement.
Plaintiff alleges that between March 17, 2021 and August 11, 2022 (the “Class Period”), Defendants Olo, Olo’s founder and chief executive officer Noah H. Glass, and Olo’s chief financial officer Peter J. Benevides made false and misleading statements and omissions regarding: (i) “active locations,” one of Olo’s “key business metrics,” (ii) Olo’s relationship with Subway restaurants, (iii) Olo’s likelihood of success in the large-chain (i.e., enterprise) restaurant market, and (iv) Olo’s financial position and prospects.
At the end of the Class Period, the Complaint alleges that Defendants’ admission that Subway intended to terminate its relationship with Olo constituted a corrective disclosure and that the other undisclosed risks materialized that same day when Olo also announced flat active locations growth in the second quarter of 2022 and a reduction in full year 2022 earnings guidance. The Complaint alleges that, as a result, the price of Olo’s Class A common stock declined sharply the following day, damaging investors who purchased or otherwise acquired Olo’s Class A common stock during the Class Period. This Action alleges that, based on the foregoing circumstances, Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Throughout this Action, Defendants have denied, and continue to deny, any and all allegations of fault, liability, wrongdoing, or damages whatsoever.
The Settlement will result in the creation of a cash settlement fund of $9,000,000. The Settlement Amount, plus accrued interest and minus the costs of this Notice and all costs associated with the administration of the Settlement, as well as any attorneys’ fees and expenses that may be approved by the Court, will be distributed to Class Members pursuant to the Plan of Allocation described in the Notice.
Note: Any capitalized terms not defined herein shall have the meanings ascribed to them in the Stipulation.
