Kessler Topaz Meltzer & Check, LLP Announces Offering
RADNOR, Pa., Oct. 19, 2022 (GLOBE NEWSWIRE) — The law firm Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) is advising investors that a securities class action lawsuit has been filed in the District United States Court of the District of Arizona v. Opendoor Technologies Inc. (“Opendoor”) (NASDAQ: OPEN). The suit accuses Opendoor of violations of federal securities laws, including omissions and fraudulent misrepresentations regarding the company’s business, operations and outlook. Due to Opendoor’s materially misleading statements and omissions to the public, Opendoor’s investors have suffered significant losses.
CLICK HERE To SUBMIT YOUR OPEN DOOR LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE INTO YOUR BROWSER: https://www.ktmc.com/new-cases/opendoor-technologies-inc?utm_source=PR&utm_medium=link&utm_campaign=open&mktm=r
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PRINCIPAL APPLICANT DEADLINE: DECEMBER 6, 2022
COURSE PERIOD: FROM DECEMBER 21, 2020 TO SEPTEMBER 16, 2022
CONTACT A LAWYER TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. at (484) 270-1453 or by email at [email protected]
Kessler Topaz is one of the world’s foremost advocates for protecting the public from corporate fraud and other wrongdoing. Our securities fraud litigants are consistently individually recognized as leaders in the field and our firm is both feared and respected within the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the categories of shareholders we represent.
OPENDOOR’S ALLEGED MISCONDUCT
The Class Period begins on December 21, 2020 to coincide with the trading of the Company’s common stock on NASDAQ shortly after its business combination on December 18, 2020 (the “Merger”). Following the Merger, Opendoor operated a digital platform for buying and selling residential real estate in the United States. The Company’s platform uses a technology called “iBuying”, which is an algorithm-based process (the “Algorithm”) that allegedly allows Opendoor to make accurate market-based offers to sellers for their homes, then flip those homes to buyers for a profit. Throughout the class period, Opendoor repeatedly touted the company’s proprietary algorithm, the data powering the algorithm, the algorithm’s alleged price accuracy, and the algorithm’s alleged real-time response. macro and microeconomic conditions.
Then, 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 still, a global real estate technology strategist interviewed by BloombergMike DelPrete, predicted that, based on his analysis, September would likely be even worse for Opendoor than August. Bloomberg’s the results highlighted the failure of Opendoor’s algorithm to accurately adapt 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, a decline of 88.61% from the company’s first post-merger closing share price of $31.25 per share on December 21, 2020.
According to the complaint, the offer documents for the Merger were negligently prepared and, as a result, contained misrepresentations of material facts or failed to state other facts necessary for the statements made not to be misleading and not misleading. were not prepared in accordance with the rules and regulations governing their preparation. In addition, throughout the Class Period, Defendants have made materially false and misleading statements regarding the business, operations and prospects of the company. Specifically, the Offering Documents and the Defendants made false and/or misleading statements and/or failed to disclose that: (1) the algorithm could not accurately adjust to changing prices of real estate in different market conditions and economic cycles; (2) as a result, the company was at increased risk of sustaining significant and repeated losses due to fluctuations in residential real estate prices; (3) as a result, defendants exaggerated the algorithm’s purported advantages and competitive advantages; and (4) as a result, the Defendants’ offering documents and public statements throughout the Class Period were materially false and/or misleading and failed to provide the information that should be contained therein.
WHAT CAN I DO?
Opendoor investors can, no later than December 6, 2022, seek to be named as the lead class representative plaintiff through Kessler Topaz Meltzer & Check, LLP or another attorney, or may choose to do nothing and remain an absentee class member. Kessler Topaz Meltzer & Check, LLP encourages Opendoor investors who have suffered significant losses to contact the company directly for more information.
CLICK HERE To SIGN UP FOR THE CASE
WHO CAN BE A PRINCIPAL APPLICANT?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead applicant is usually the investor or small group of investors who have the greatest financial interest and who are also adequate and typical of the proposed category of investors. The lead plaintiff chooses an attorney to represent the lead plaintiff and the class and those attorneys, if approved by the court, are the lead or class attorneys. Your ability to participate in any collection is not affected by whether or not to serve as lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP is filing class actions in state and federal courts nationwide and around the world. The company has developed a worldwide reputation for excellence and has recovered billions of dollars for victims of fraud and other malpractice. All of our work is guided by a common goal: to protect investors, consumers, employees and others from fraud, abuse, corporate and fiduciary misconduct and negligence. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
A video accompanying this announcement is available at: https://www.globenewswire.com/NewsRoom/AttachmentNg/d2038192-4773-4310-899a-7dc1b9b7bef9