Please complete this form relating to your transactions for Opendoor Technologies Inc. (NASDAQ: OPEN) securities between December 21, 2020 and September 16, 2022, both dates inclusive (the “Class Period”).
You may also contact Jonathan Naji, Esq. (484) 270-1453; or you may submit your information via email at firstname.lastname@example.org; or you may click here to print a PDF of this form.
Opendoor investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than December 6, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired: (1) Opendoor Technologies Inc. (“Opendoor”) (NASDAQ: OPEN) securities between December 21, 2020 and September 16, 2022, both dates inclusive (the “Class Period”); and/or (2) Opendoor common stock pursuant and/or traceable to the offering documents issued in connection with the business combination completed on or about December 18, 2020 (the “Merger”).
The Class Period begins on December, 21, 2020 to coincide with the company’s trading of common stock on the NASDAQ. Following the Merger, Opendoor has operated a digital platform for buying and selling residential real estate in the U.S. The company’s platform features a technology known as “iBuying,” which is an algorithm-based process (the “Algorithm”) that purportedly enables Opendoor to make accurate market-based offers to sellers for their homes, and then flip those homes to buyers for a profit. Throughout the Class Period, Opendoor repeatedly touted the company’s proprietary Algorithm, the data powering the Algorithm, the Algorithm’s purported pricing accuracy, and the Algorithm’s purported real-time reaction to macro- and micro-economic conditions.
Then, on September 19, 2022, citing a review of industry data, Bloomberg reported that Opendoor appeared to have lost money on 42% of its transactions in August 2022 (as measured by the prices at which it bought and sold properties). Bloomberg further reported that the data was even worse in key markets such as Los Angeles, California, where Opendoor lost money on 55% of sales, and Phoenix, Arizona, where it lost money on 76% of sales. Worse, a global real estate tech strategist interviewed by Bloomberg, Mike DelPrete, predicted that, based on his analyses, September would likely be even worse for Opendoor than August. Bloomberg’s findings evidenced the failure of Opendoor’s Algorithm to adjust accurately to changing market conditions. Following the Bloomberg report, Opendoor’s stock price fell $0.50 per share, or 12.32%, over the following two trading sessions, to close at $3.56 per share on September 20, 2022—an 88.61% decline from the company’s first post-Merger closing stock price of $31.25 per share on December 21, 2020.
According to the complaint, the offering documents for the Merger were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, throughout the Class Period, Defendants made materially false and misleading statements regarding the company’s business, operations, and prospects. Specifically, the offering documents and Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Algorithm could not accurately adjust to changing house prices across different market conditions and economic cycles; (2) as a result, the company was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations; (3) accordingly, Defendants overstated the purported benefits and competitive advantages of the Algorithm; and (4) as a result, the offering documents and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.