In re Opendoor Technologies Inc. Securities Litigation

Labaton Keller Sucharow is lead counsel in a securities class action lawsuit against Opendoor Technologies Inc. (Opendoor or the Company), certain of its executives (Individual Defendants), and certain underwriters (Underwriter Defendants).  A $39 million settlement was reached that resolves claims on behalf of all (i) all persons and entities who or which purchased or otherwise acquired Opendoor common stock (OPEN) pursuant and/or traceable to the Offering Documents issued in Opendoor’s de-SPAC Merger on or about December 21, 2020, and/or Opendoor’s February 2021 Offering on or about February 4, 2021; and (ii) all persons and entities who or which purchased the publicly traded common stock of Opendoor on the NASDAQ or any U.S.-based trading platform from December 21, 2020 through November 3, 2022, inclusive (Class Period) and were damaged thereby.

The operative complaint in the Action is the Consolidated Amended Complaint for Violations of the Federal Securities Laws, which was filed after an investigation by Lead Counsel on April 17, 2023.  The Complaint alleges claims under Section 11 of the Securities Act of 1933 against Opendoor, the Individual Defendants, and the Underwriter Defendants, and claims under Section 15 of the Securities Act against the Individual Defendants.  The Complaint also asserted claims against certain of the Defendants under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.  The Complaint alleged that Defendants made materially false and misleading statements and omissions with respect to Opendoor’s proprietary AI-powered pricing algorithm and its ability to dynamically adjust to changing market conditions, including in the Offering Documents issued in connection with the de-SPAC Merger on or about December 21, 2020, and the Offering Documents issued in connection with Opendoor’s February 2021 Offering on or about February 4, 2021.  The Complaint further alleged that the price of Opendoor common stock trading on the NASDAQ and other U.S.-based trading platforms was artificially inflated as a result of Defendants’ allegedly false and misleading statements and omissions and declined when the truth was allegedly revealed through a series of partial corrective disclosures.

Defendants moved to dismiss the Complaint, which Plaintiffs opposed, and after oral argument, the Court granted Defendants’ motions to dismiss the Complaint, with leave to amend.  Plaintiffs filed a motion for reconsideration solely as to the Court’s dismissal of the Securities Act claims, which Defendants opposed.  The Court granted Plaintiffs’ motion for reconsideration, vacating in part and amending the Court’s dismissal Order, and finding that Plaintiffs had adequately alleged claims under Sections 11 and 15 of the Securities Act with respect to the alleged misstatement that Opendoor’s pricing algorithms “can dynamically adjust to leading market indicators and react to real-time macro- and micro-economic conditions.”  Plaintiffs filed a Notice of Intent Not to File a Second Amended Complaint, with respect to the Exchange Act claims, and moved the case forward with the Securities Act claims.

The case is In re Opendoor Technologies Inc. Sec. Litig., No. 2:22-CV-01717-MTL.  The Action is assigned to the Honorable Michael T. Liburdi, United States District Judge.  Labaton Keller Sucharow represents Oakland County Employees’ Retirement System, Oakland County Voluntary Employees’ Beneficiary Association, and Stuart Graham Hereford.  The Court in charge of the case is the United States District Court for the District of Arizona.

Submit Claim Form

If you purchased or otherwise acquired Opendoor common stock (i) pursuant and/or traceable to the Offering Documents issued in connection with Opendoor’s de-SPAC Merger on or about December 21, 2020 (de-SPAC Merger) and/or its February 2021 Offering on or about February 4, 2021 (February 2021 Offering), and/or (ii) on the NASDAQ or any U.S.-based trading platform during the period from December 21, 2020 through November 3, 2022, both dates inclusive (the Class Period), and were damaged thereby, you may be entitled to a payment from a class action settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by December 27, 2025.

Settlement Hearing

A Settlement Hearing will be held on January 6, 2026, at 9:00 a.m. (local time), before the Honorable Michael T. Liburdi, Courtroom 504 at the United States District Court for the District of Arizona, Sandra Day O’Connor U.S. Courthouse, 401 W. Washington Street, Phoenix, AZ 85003.

If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com; 1-888-219-6877; or contact the Claims Administrator, 888- 999-6212.  Additional information about the Settlement can also be found at www.OpendoorSecuritiesSettlement.com.