According to the Complaint, Olo Inc. offers online ordering, delivery integration, and payment products. Among its products, Olo offers “Rails,” which is a program that enables digital orders from third-party marketplaces to be transmitted directly to restaurants where Rails has been set up.

In February 2020, the Company announced a partnership with Subway® restaurants to enable Subway’s more than 20,000 U.S.-based restaurants to handle digital orders from third-party “marketplaces” such as Uber Eats or DoorDash. Throughout the Class Period, Olo touted the growth of its active locations, with Subway accounting for approximately 20% of those locations.

The Complaint alleges that, during the Class Period, Defendants misled investors and/or failed to disclose 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) that, as a result of the above, Defendants’ statements about Olo’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.

On December 21, 2022, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on January 13, 2023. Defendants filed a Motion to Dismiss the amended Complaint on February 3. On April 10, the Court issued an Order denying Defendants' Motion to Dismiss.

Lead Plaintiff filed a Motion for Class Certification on June 5, 2023.

Lead Plaintiff filed a second amended Complaint on August 9, 2023. Defendants filed a Motion to Dismiss the second amended Complaint on August 24. On September 26, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.

The Court issued an Order granting the Motion for Class Certification on December 1, 2023. On January 16, 2024, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on February 20.