| COMPANY |
Opendoor Technologies Inc. |
| COURT |
United States District Court for the District of Arizona |
| CASE NUMBER |
22-cv-01717 |
| JUDGE |
Michael T. LiBurdi |
| CLASS PERIOD |
December 21, 2020 and September 16, 2022 |
| SECURITY TYPE |
Securities |
Case Background:
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”).
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.
Current Status of Case:
On June 30, 2023, Defendants filed a Motion to Dismiss the action. The Court granted the Motion to Dismiss with leave to amend on February 28, 2024. Lead Plaintiffs filed a Motion for Reconsideration and requested a stay on the deadline for Lead Plaintiffs to file a Second Amended Complaint on March 13, 2024. On May 14, 2024, the Court granted the Motion for Reconsideration vacating in part the Order on Defendants’ Motion to Dismiss and lifted the stay for Lead Plaintiffs to file a Second Amended Complaint. This action is ongoing.
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 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.