Olo Inc.

On February 12, 2020, Olo announced its partnership with Subway restaurants to allow Subway’s network of more than 20,000 U.S. restaurants to handle digital orders from third-party marketplaces.

On August 11, 2022, Olo released its second quarter 2022 financial results, disclosing that it was in the process of losing its business from Subway, and that it had already lost about 2,500 Subway locations during the second quarter, and that the remaining 15,000 Subway locations would be removed from the Company’s active locations count in forthcoming quarters.

On this news, Olo’s stock fell $4.73, or 36.4%, to close at $8.26 per share on August 12, 2022, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Subway was ending its contract with Olo; (2) Olo’s key business metric – active locations – could not continue to grow as Defendants touted due to the loss of Subway’s business; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.