Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Opendoor Technologies Inc. (NASDAQ: OPEN; OPENW) securities between December 21, 2020 and September 16, 2022, inclusive (the “Class Period”) and/or common stock pursuant and/or traceable to the offering documents issued in connection with the business combination between Opendoor and Opendoor Labs Inc. (“Legacy Opendoor”) completed on or about December 18, 2020 (the “Merger”) have until December 6, 2022 to seek appointment as lead plaintiff in the Opendoor class action lawsuit. Captioned Alich v Opendoor Technologies Inc., No. 22-cv-01717 (D. Ariz.), the Opendoor class action lawsuit charges Opendoor as well as certain of its top executives and directors with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Opendoor class action lawsuit, please provide your information here:
CASE ALLEGATIONS: Opendoor was formerly known as Social Capital Hedosophia Holdings Corp. II (“SCH”) and operated as a special purpose acquisition company (“SPAC”), also called a blank-check company. On September 15, 2020, Opendoor, then still operating as SCH, and Legacy Opendoor, a private company operating as a digital platform for residential real estate, announced their entry into a definitive agreement for the Merger, which valued Legacy Opendoor at an enterprise value of $4.8 billion. Following the Merger, Opendoor has operated a digital platform for buying and selling residential real estate in the United States.
The Opendoor class action lawsuit alleges the offering documents and defendants made false and/or misleading statements and/or failed to disclose that: (i) the algorithm used by Opendoor to make offers for homes could not accurately adjust to changing house prices across different market conditions and economic cycles; (ii) as a result, Opendoor was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations; and (iii) accordingly, defendants overstated the purported benefits and competitive advantages of the algorithm.
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. On this news, Opendoor’s stock price fell by more than 12% over the following two trading sessions – an 88.61% decline from Opendoor’s first post-Merger closing stock price of $31.25 per share on December 21, 2020.
Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Opendoor securities during the Class Period and/or common stock pursuant and/or traceable to the offering documents issued in connection with the Merger to seek appointment as lead plaintiff. 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 Opendoor class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Opendoor class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Opendoor class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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