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OLO.US

Olo (OLO) Subway Locations Loss Settlement

S.D. New York
Court
1:22-cv-08228
Case number
17 Mar 2021
Class period Start
11 Aug 2022
Class period End
  • Olo (OlO) agreed to settle $9M with shareholders to end claims over misleading about the Subway partnership.
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.
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
26 September 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
Total Settlement Amount
Created by Polina Foster, Scout

Olo Inc

Olo Inc. operates an open SaaS platform for restaurants in the United States. The company's platform enables on-demand digital commerce operations, which cover digital ordering, delivery, front-of-...

    Ticker
    OLO.US
    ISIN
    US68134L1098
    CIK
    1431695
    Sector
    Technology
    Industry
    Software - Application
    Country
    USA
    Address
    99 Hudson Street, New York, NY, United States, 10013