Gainey McKenna & Egleston announce a class action lawsuit

Gainey McKenna & Egleston announce a class action lawsuit


NEW YORK, Oct. 10, 2022 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of Arizona on behalf of all persons who purchased Opendoor Technologies, Inc. (“Opendoor” or the “Company”) OPEN Common Stock between December 21, 2020 and September 16, 2022, both dates inclusive (the “Collection Period”); and/or (b) Opendoor common stock pursuant to and/or attributable to the offering documents issued in connection with the business combination between the Company and Opendoor Labs Inc. (“Legacy Opendoor”) that took place on or about December 18, 2020 completed (the “Merger”).

The complaint alleges that the merger offer documents were prepared negligently and, as a result, contained untrue statements about material facts or failed to disclose other facts necessary for the statements made not to be misleading and that they are inconsistent created with the rules and regulations governs their preparation. In addition, during the Class Period, the Defendants made materially false and misleading statements about the Company’s business, operations and prospects. In particular, the Offering Documents and the Defendants made false and/or misleading statements and/or failed to disclose the following: (i) the algorithm (“Algorithm”) used by the Company to make offerings for properties could not accurately match changing real estate prices adjust for different market conditions and economic cycles; (ii) as a result, the Company was exposed to an increased risk of incurring significant and repeated losses as a result of fluctuations in residential real estate prices; (iii) accordingly, Defendants overstated the alleged benefits and competitive advantages of the Algorithm; and (iv) as a result, the Offer Documents and Defendants’ public statements during the Class Period were materially false and/or misleading and did not contain any information that was required to be contained therein.

Investors who have purchased or otherwise acquired Shares…

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