Loyalty Ventures Class Action Lawsuit - LYLT
Case Summary
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The Loyalty Ventures class action lawsuit seeks to represent purchasers of Loyalty Ventures, Inc. (NASDAQ: LYLT; OTC: LYLTQ) common stock between November 8, 2021 and June 7, 2022, inclusive (the “Class Period”). Captioned Newtyn Partners, LP v. Alliance Data Systems Corporation n/k/a Bread Financial Holdings, Inc., No. 23-cv-01451 (S.D. Ohio), the Loyalty Ventures class action lawsuit charges Alliance Data and certain of Alliance Data’s and Loyalty Ventures’ top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Loyalty Ventures class action lawsuit, please provide your information in the form on this page. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Loyalty Ventures class action lawsuit must be filed with the court no later than June 26, 2023.
CASE ALLEGATIONS: Loyalty Ventures was created as a result of a November 2021 spinoff from Alliance Data. Loyalty Ventures owns and operated AIR MILES reward program (“Air Miles”), an end-to-end loyalty platform, and BrandLoyalty, a campaign-based loyalty program for grocer and other high-frequency retailers. Sobeys Inc. is the second-largest supermarket chain in Canada, and was the second-largest Sponsor in the Air Miles program.
The Loyalty Ventures class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) the Air Miles program suffered from a lack of investment prior to the spinoff; (ii) as a result, Sobeys had informed Alliance Data it was considering exercising its early termination rights; (iii) the threat of Sobeys’ departure loomed throughout 2021, including the time frame leading up to the spinoff; (iv) 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 (v) 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 Loyalty Ventures’ ability to continue operations.
On June 8, 2022, Loyalty Ventures announced it was “unable to align on extension terms” with Sobeys, 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 first quarter of 2023.” On this news, the price of Loyalty Ventures stock declined more than 45%, damaging investors.
Then, on March 9, 2023, Loyalty Ventures reported that it was filing for Chapter 11 Bankruptcy.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Loyalty Ventures common stock during the Class Period to seek appointment as lead plaintiff of the Loyalty Ventures class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Loyalty Ventures class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Loyalty Ventures class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Loyalty Ventures class action lawsuit.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.