The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Loyalty Ventures Inc. (LYLTQ) Investors

Investors with losses exceeding $1,000,000 are encouraged to contact the firm

The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Loyalty Ventures Inc. (“Loyalty Ventures” or the “Company”) (OTC: LYLTQ) common stock between November 8, 2021 and June 7, 2022, inclusive (the “Class Period”). Loyalty Ventures investors have until June 26, 2023 to file a lead plaintiff motion.

If you are a shareholder who suffered a loss, click here to participate.

On June 8, 2022, before the market opened, Loyalty Market announced that its Air Miles Reward Program segment and its Air Miles sponsor, Sobeys, were “unable to align on extension terms” and Sobeys would “exit the program on a region-by-region basis.”

On this news, Loyalty Ventures’s stock price fell $5.01, or 45.4%, to close at $6.02 per share on June 8, 2022, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Air Miles program suffered from a lack of investment prior to the spinoff; (2) as a result, Sobeys 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; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased Loyalty Ventures common stock during the Class Period, you may move the Court no later than June 26, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Loyalty Ventures common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230508005352/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Loyalty Ventures Inc. (LYLTQ) Investors