6 Things Shareholders Should Know About the Loyalty Venture Class Action Lawsuit

If you suffered losses in Loyalty Ventures stock, call Loyalty Ventures stock loss lawyer Timothy L. Miles

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.
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If you suffered losses in Loyalty Ventures stock and wish to serve as lead plaintiff in the class action against Loyalty Ventures, please provide your information below.  You can also ​contact Loyalty Ventures Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected]. Lead plaintiff motions for the Loyalty Ventures class action lawsuit must be filed with the court no later than June 26, 2023.  If you suffered losses in Loyalty Ventures stock and have questions, please contact Loyalty Ventures Stock Loss Lawyer Timothy L. Miles today.

Read on to learn six important things every shareholder of Loyalty Ventures should know.

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What Are the Allegations in the Loyalty Ventures Class Action Lawsuit?

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 timeframe 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 who suffered losses in Loyalty Ventures stock.

Then, on March 9, 2023, Loyalty Ventures reported that it was filing for Chapter 11 Bankruptcy

What Is the Lead Plaintiff Process in the Loyalty Ventures Class Action Lawsuit

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in Loyalty Ventures stock to seek appointment as lead plaintiff in the in 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 class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit.  An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in Loyalty Ventures stock, and have further questions, contact Loyalty Ventures stock loss Lawyer Timothy L. Miles today who will fight to recover your damages in a Loyalty Ventures class action lawsuit.

If I Suffered Losses in Loyalty Ventures Stock, What Are the Benefits of Serving as Lead Plaintiff in the Class Action Against Loyalty Ventures?

​Serving as a Lead Plaintiff in the Loyalty Ventures class action lawsuit has several advantages and important benefits including:

• A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
• Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
• There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred int the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
• Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
• Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. 

How Was the Class Period Determined in the Class Action Against Loyalty Ventures?

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives.  The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading.  The class period ends when the truth is revealed to the investing public trough a corrective disclosure.  
 
In order to be a part of the class in the Loyalty Ventures class action lawsuit, you must have suffered damages in Loyalty Ventures stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated.

How Can a Loyalty Ventures Stock Loss Lawyer Help Me if I Suffered Losses in Loyalty Ventures Stock?

​​​A Loyalty Ventures stock loss Lawyer is well-versed in the complex laws that govern the securities industry and litigation and focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals. Ordinary individual investors, including civil servants, teachers, nurses, and retirees, may need a securities lawyer.  In most cases, if they have lost money due to mistakes, incompetence, or fraud by an investment professional. While FINRA, the SEC, and state securities regulators serve a vital role in protecting investors, they simply have too many individuals, firms, and market transactions to monitor to discovery every act of fraud or negligence. Individual investors should consult with a securities lawyer if they have lost money due to fraud or stockbroker misconduct. 

If I Suffered Losses in Loyalty Ventures Stock, How Much Can I Get Out of the Loyalty Ventures Class Action Lawsuit?

​​​In a securities fraud class action lawsuit, the plaintiff’s damages are typically calculated as out-of-pocket losses. These losses are expressed as the difference between the price at which the stock was sold and the price at which the stock would have been sold absent any artificial inflation caused by the defendant’s alleged misrepresentations or omissions which is whyu shareholders suffered losses in Loyalty Ventures stock. 

Do Class Members Who Suffered Losses in Loyalty Ventures Stock Need to Do Anything Right Now?

If you suffered losses in Loyalty Ventures stock and purchased during the class period, then you are automatically a member of the class.  If you do not wish to seek appointment of lead plaintiff and just wish to remain a class member, then there is nothing you need to do at this point.  At some point the Court may certify the Loyalty Ventures class action lawsuit as a class action lawsuit, or there could be a settlement, at which point you will receive a Court ordered notice instructing you what you need to do and with deadlines.  In the case of a settlement, you would need to file a claim form along with proof of ownership of your shares. 

Contact an Loyalty Ventures Stock Loss Lawyer Today if You Suffered Losses in Loyalty Ventures Stock About a Loyalty Ventures Class Action Lawsuit

​If you suffered losses Loyalty Ventures stock, contact Loyalty Ventures stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action lawsuit against Loyalty Venturs.

Timothy L. Miles, Esq.

Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association, a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website.