Raine Group, Olo Inc. Board Sued by Investor Over Stock Buybacks

An Olo Inc. investor sued Raine Group LLC, challenging planned stock buybacks that will allegedly force the software company’s public shareholders to pay for the privilege of handing the merchant bank outright majority control.

Raine affiliates exploited their 49% voting power over the restaurant tech venture—and influence with its board—to engineer a $100 million repurchase program for the second time in two years, a maneuver aimed at “using Olo’s corporate treasury to pass control to Raine without Raine paying a control premium,” according to the lawsuit filed Wednesday. The previous round of buybacks allegedly increased Raine’s voting control from 41% ...