OLO.US
id: 1071
Olo (OLO) Subway Locations Loss Settlement
S.D. New York
Court1:22-cv-08228
Case number03/17/2021
Class period Start08/11/2022
Class period End07/09/2024
Claim deadlineOlo (OlO) agreed to settle $9M with shareholders to end claims over misleading about the Subway partnership.
Case Details:
In February 2020, Olo partnered with Subway to help over 20,000 US-based Subway restaurants manage digital orders from platforms like Uber Eats or DoorDash.
- On August 10, 2021, Olo announced about 74,000 active locations, up 30% from the previous year, including 15,000 Subway locations, making up around 20% of the total.
$OLO rose above $45 per share as the company reported a growth in active locations.
However, $OLO was accused of neglecting to reveal the following details:
- Olo included soon-to-be-closed Subway locations in reported figures.
- After reporting Q2 2022 results, Olo lowered its full-year guidance, disclosing that 2,500 Subway locations were joining third-party platforms.
- The remaining 15,000 Subway locations would be removed from active counts in Q4 2022 and Q1 2023.
- Following this news, $OLO dropped by 36%, causing harm to investors.
Olo has now decided to end these allegations and pay a $9M settlement.
Case Status
Distribution Preparation
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.04
Filing date
09/26/2022
Plaintiffs
Steamship Trade Association of Baltimore
Attorneys
Scott + Scott Attorneys at Law LLP
Defendants
Noah H. Glass, Peter J. Benevides
Judge
Jed S. Rakoff
Administrator
Kroll
Settlement agreement date
2024-01-19
Class wide damages
$331,000,000
Trades matching type
FIFO
+$9,000,000
Cash Settlement AmountFrequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How much will my payment be?
How long does the payout process take?
What is 11thestate?