Opendoor Technologies Class Action Lawsuit (OPEN Lawsuit)
What Is The Opendoor Technologies Class Action Lawsuit About?
The Opendoor Technologies Class Action Lawsuit (NASDAQ:OPEN) (Opendoor Technologies Class Action Lawsuit) was filed when after the market closed. 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).
Is There An Opendoor Technologies Class Action Lawsuit?
OPEN:NASDAQ Class Action Lawsuit (Opendoor Technologies Inc.) was filed on October 7, 2022 on behalf of shareholders. The lawsuit was filed because 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).
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.
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 first post-Merger closing stock price of $31.25 per share on December 21, 2020 (the “Initial Closing Price”).
Is There A Deadline For The Opendoor Technologies Lawsuit?
How Much Did Shareholders Lose In Opendoor Technologies Stock?
Shareholders who held OPEN securities 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 first post-Merger closing stock price of $31.25 per share on December 21, 2020 (the “Initial Closing Price”).
What Is The Opendoor Technologies Lawsuit Complaint?
Levi & Korsinsky, LLP announces that a OPEN class action lawsuit (Opendoor Technologies Class Action Lawsuit) has been filed on behalf of investors who purchased Opendoor Technologies Class Action Lawsuit (OPEN) securities between December 21, 2020 – September 16, 2022, inclusive. For more on the OPEN Lawsuit please contact us today.
According to the Opendoor Technologies lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(i) the algorithm (“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;
(ii) as a result, the Company was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations;
(iii) accordingly, Defendants overstated the purported benefits and competitive advantages of the Algorithm; and
(iv) 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.
If you suffered a loss in OPEN, you have until December 6, 2022 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Why Levi & Korsinsky, LLP Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired OPEN securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The OPEN class-action lawsuit is directed by the lead plaintiff. To litigate the Opendoor Technologies Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the OPEN Class Action Lawsuit.
What Does OPEN Do?
Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States.
The company’s platform enables consumers to buy and sell a home online. It also provides title insurance and escrow services.
Opendoor Technologies Inc. was incorporated in 2013 and is based in Tempe, Arizona.