NEW YORK, Oct. 18, 2022 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Opendoor Technologies, Inc. (“Opendoor” or the "Company”) (NASDAQ: OPEN). A class action complaint has been filed on behalf of investors that purchased or otherwise acquired Opendoor securities between December 21, 2020 and September 16, 2022, inclusive (the “Class Period”); and/or Opendoor common stock pursuant and/or traceable to the Offering Documents issued in connection with the business combination between the Company and Opendoor Labs Inc. completed on or about December 18, 2020 (the “Merger”).
If you acquired Opendoor common stock or other securities and would like to discuss and would like to discuss our investigation or your rights to recover losses, please click below:
Opendoor Technologies Investigation
Or contact us by emailing pmayer@kaplanfox.com or by calling (646) 315-9003 or our toll free number 1-800-290-1952.
If you are a member of the proposed Class, you may move the court no later than December 6, 2022 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery.
According to the complaint, on September 19, 2022, citing a review of industry data, Bloomberg reported that the Company 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). Further, according to the complaint, Bloomberg 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 Opendoor lost money on 76% of sales. Further, the complaint alleges that Bloomberg’s findings evidenced the failure of Opendoor’s algorithm to adjust accurately to changing market conditions.
According to the complaint, 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 fist post-merger closing stock price of $31.25 per share on December 21, 2020.
The complaint alleges, among other things, that the Offering Documents for the December 2020 Merger made false and/or misleading statements and/or failed to disclose that (i) the algorithm used by the Company to make offers for homes could not accurately adjust to changing house prices across different market conditions and economic cycles, and (ii) that as a result, the Company was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
