Opendoor Technologies Inc. (OPEN) Stock Alert: Robbins LLP

SAN DIEGO, Oct. 17, 2022 (GLOBE NEWSWIRE) —

Robbins LLP reminds investors that a class action lawsuit has been filed on behalf of all persons and entities who purchased or otherwise acquired securities of Opendoor Technologies Inc. (NASDAQ:OPEN) between December 21, 2020 and September 16, 2022 , or as part of the Company’s SPAC. merger completed on December 18, 2020. Shareholders who wish to participate in the class action have until December 6, 2020 to ask the court to be named the class’ lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members to direct litigation. You don’t have to be in the case to be eligible for a clawback.

All representation is done on a contingent fee basis. Shareholders do not pay any fees or expenses.

If you would like more information about the misconduct of Opendoor Technologies Inc., click here.

What this case is about: Opendoor Technologies Inc. (OPEN) misled investors about its algorithm’s ability to adapt to changing house prices under different market conditions and cycles

According to the complaint, Opendoor was formerly known as Social Capital Hedosophia Holdings Corp. II (“SCH”), which was a special purpose acquisition company. SCH merged with Legacy Opendoor, a private company operating as a digital platform for residential real estate. Since the merger in December 2020, Opendoor has operated a digital platform for buying and selling residential real estate in the United States. The company’s platform features a technology known as “iBuying,” which is an algorithm-based process that allegedly enables Opendoor to perform accurate market analysis. based on offerings to sellers for their homes and then returning those homes to buyers for a profit.

The complaint alleges that the offering documents and the defendants made false and misleading statements in connection with the merger. Specifically, the defendants failed to disclose that: (i) the algorithm used by the company to make housing offers could not accurately adapt to changing housing prices under different market conditions and cycles ; (ii) as a result, the Company was exposed to an increased risk of sustaining significant and repeated losses due to fluctuations in residential property prices; and (iii) the defendants exaggerated the purported advantages and benefits of the algorithm.

On September 19, 2022, Bloomberg reported that the company appeared to have lost money on 42% of its trades in August 2022. Bloomberg further reported that the data was even worse in key markets where Opendoor lost money on 55% of sales (Los Angeles) and 76% of sales (Phoenix). A global real estate technology strategist interviewed by Bloomberg predicted that September would be worse for Opendoor than August. Following this news, Opendoor’s stock price fell $0.50, or more than 12% over two trading sessions, to close at $3.56 per share on September 20, 2022, a decline of 88%. .61% to the company’s first post-merger closing price of $31.25 per share. on December 21, 2020.

Contact us for more information:

Aaron Dumas
(800) 350-6003
[email protected]
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP are dedicated to helping shareholders recoup losses, improving corporate governance structures and holding corporate executives responsible for their wrongdoings since 2002. To be notified if a class action lawsuit against Opendoor Technologies Inc. settles or to receive free alerts when corporate executives commit wrongdoing, sign up for Watch Inventory today.

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