NEW YORK (Legal Newsline) - The law firm Scott + Scott will lead a shareholder class action lawsuit against a restaurant online ordering/delivery software company accused of misleading investors.
New York federal judge Jed Rakoff has approved an unopposed motion for the Steamship Trade Association-International Longshoreman's Association to serve as lead plaintiff, with Scott + Scott as its lead counsel.
The case concerns Olo Inc., a New York-based company providing online ordering and food delivery software that announced a partnership with Subway restaurants in February 2020.
"Here, STA-ILA's choice of counsel, Scott + Scott, has represented investors in several prior cases and has recovered hundreds of millions of dollars for them," Rakoff wrote.
Suits allege 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.