Opendoor Technologies Inc.
A securities class action has been filed in the USDC, AZ. on behalf of purchasers and acquirers of the securities of Opendoor Technologies Inc. f/k/a Social Capital Hedosophia Holdings Corp. II (NASDAQ: OPEN): (i) between December 21, 2020 and September 16, 2022, both dates inclusive (the “Class Period”); and/or (ii) pursuant and/or traceable to the offering documents issued in connection with the business combination between the Social Capital Hedosophia Holdings Corp. II and Opendoor Labs Inc. completed on or about December 18, 2020 (the “Merger”).
According to the lawsuit, the offering documents for the Merger were negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and were not prepared in accordance with the rules and regulations governing their preparation. Additionally, according to the lawsuit, throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the offering documents and defendants made false and/or misleading statements and/or failed to disclose that:
- 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;
- as a result, the Company was at an increased risk of sustaining significant and repeated losses due to residential real estate pricing fluctuations;
- accordingly, defendants overstated the purported benefits and competitive advantages of the Algorithm; and
- 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.
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