WHITE PLAINS, N.Y. (Legal Newsline) — The Pompano Beach Police and Firefighters' Retirement System alleges a restaurant online ordering/delivery software company misled it and other investors.
Pompano Beach Police and Firefighters' Retirement System, individually and on behalf of all others similarly situated, filed a complaint Sept. 26 in the U.S. District Court for the Southern District of New York against Olo Inc., Noah Glass and Peter J. Benevides alleging fraud, violation of the Securities Exchange Act and other claims.
According to the plaintiff's class action, New York-based Online Ordering (Olo), provides online ordering and food delivery software to restaurants and in February of 2020, announced its partnership with Subway restaurants.
It alleges that in August of 2021, Olo reported its "active locations" to demonstrate its business growth as having approximately 15,000 Subway locations, which caused its stock price to "soar" above $45 per share. The plaintiffs claim Olo misled investors and omitted material facts about the company's success by citing Subway locations that were set to end their relationship with Olo.
They further claim that Olo's misleading of the investing public led to the inflated price of the company's stock and that Olo "engaged in a scheme to deceive the market." The plaintiff alleges Olo's actions caused it to purchase Olo stock at artificially inflated prices since the stock price fell to $12.99 per share on Aug. 11 and fell to $8.26 per share on Aug. 12.
The plaintiffs seek monetary relief, interest, trial by jury and all other just relief. They are represented by Steven Singer and Rachel Avan of Saxena White PA in White Plains, Maya Saxena and Lester Hooker of Saxena White PA in Boca Raton.
U.S. District Court for the Southern District of New York case number 1:22-CV-08228-JSR