Olo Inc. Officers and Directors Under Investigation for Alleged False Statements

Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Olo Inc. (NYSE: OLO) relating to possible false and misleading statements regarding Olo’s number of active locations, a key performance metric. 

On September 26, 2023, Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York denied in part a motion to dismiss a class action complaint filed against Olo and Noah Glass and Peter Benevides, the company’s CEO and CFO, relating to allegations that the defendants misstated the company’s active locations in public SEC filings. Olo, a maker of software that facilitates online restaurant ordering, touted its number of active locations as a key financial performance metric. Specifically, the plaintiffs alleged that between March 17, 2021 and August 11, 2022, Olo, Glass, and Benevides repeatedly misstated the company’s active locations by counting locations prematurely, counting inactive locations, and counting all the locations of large chains regardless of whether each location was using the software. When the company disclosed the truth on August 11, 2022, Olo’s stock price plummeted 36% in a single day.   

During the relevant period, the securities class-action plaintiffs also alleged that Glass and Benevides sold millions of dollars of their personal Olo stock.     

The Schubert Firm is investigating potential breaches of fiduciary duty by Olo’s officers and directors in connection with these allegations.

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