The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Ohio on behalf of those who acquired Loyalty Ventures Inc. (“Loyalty Ventures” or the “Company”) (OTC: LYLTQ) securities during the period from November 8, 2021 through June 7, 2022 (the “Class Period”). Investors have until June 26, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Loyalty Ventures owns and operates the AIR MILES Reward Program (“Air Miles”), an end-to-end loyalty platform, and BrandLoyalty, a campaign-based loyalty program for grocers and other high-frequency retailers.
On June 8, 2022, Loyalty Ventures filed a Form 8-K with the SEC that contained a press release that provided updates on the Company’s Air Miles Reward Program Business. The press release revealed that the Company and Air Miles Sponsor Sobeys “were unable to align on extension terms,” and “consequently, Sobeys provided notice of its intent to exit the program on a region-by-region basis, beginning with Atlantic Canada, between August and the first quarter of 2023.” On this news, the price of Loyalty Ventures shares declined $5.01 per share, or approximately 45.42%, from $11.03 per share to close at $6.02 on June 8, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) the Air Miles program suffered from a lack of investment prior to the spinoff; (2) as a result, Sobeys, one of Loyalty Ventures’ largest customers, had informed Defendants it was considering exercising its early termination rights; (3) the threat of Sobeys’ departure loomed throughout 2021 including in the timeframe leading up to the spinoff; (4) Defendants expected the departure of any single large Sponsor, such as Sobeys, would have “network effect” on the value of the entire Air Miles program; and (5) the high leverage and debt service obligations foisted upon Loyalty Ventures, in conjunction with the “network effect” impact on the value of the Air Miles business, threatened the Company’s ability to continue operations.
If you purchased or otherwise acquired Loyalty Ventures securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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