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OLO.US
id: 1071

Olo (OLO) Subway Locations Loss Settlement

$9,000,000
Cash Settlement
S.D. New York
Court
1:22-cv-08228
Case number
03/17/2021
Class period Start
08/11/2022
Class period End
07/09/2024
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 Type
US Securities Class Action
Case Status
Distribution Started
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
Disbursement date
03/13/2025

Frequently Asked Questions

Who is eligible for this settlement?

All persons who purchased or otherwise acquired Class A common stock of Olo between March 17, 2021 and August 11, 2022, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.04 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.16 per share.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.