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OLO.US
id: 1071

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
09 Jul 2024
Claim deadline
Olo (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
Accepting Claims
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.04
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
Cash Settlement Amount

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