Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired Opendoor Technologies Inc. (“Opendoor”) (NASDAQ: OPEN) (1) common stock pursuant and/or traceable to the registration statement, related prospectus, and proxy statement (collectively, the “Offering Materials”) issued in connection with the de-SPAC merger on or about December 21, 2020 (“December 2020 Merger”) and/or in connection with the secondary public offering (“SPO”) on or about February 4, 2021; and/or (2) common stock between December 21, 2020 and November 3, 2022, inclusive (the “Class Period”).
The complaint alleges that the Offering Materials 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, the complaint alleges that, in the Offering Materials and throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Opendoor’s proprietary AI-powered pricing algorithm (the “Algorithm”) could not accurately adjust to changing house prices across different market conditions and economic cycles; (2) as a result, Opendoor 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 Materials and Defendants’ public statements throughout the Class Period were materially false and/or misleading and failed to state information required to be stated therein at all relevant times.
Current Status of Case:
On June 13, 2025, Plaintiffs filed a Motion for Preliminary Approval of the Proposed Class Action Settlement. This action is ongoing.
f 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 info@ktmc.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.