According to the Complaint, Opendoor Technologies Inc. operates a digital platform for buying and selling residential real estate in the U.S. The Company’s platform features a technology known as “iBuying,” which is an algorithm-based process that purportedly enables Opendoor to make accurate market-based offers to sellers for their homes, and then flip those homes to buyers for a profit.

Opendoor was formerly known as Social Capital Hedosophia Holdings Corp. II (“SCH”) and operated as a special purpose acquisition company. On September 15, 2020, the Company, then still operating as SCH, and Legacy Opendoor, a private company operating as a digital platform for residential real estate, announced their entry into a definitive agreement for the Merger, which valued Legacy Opendoor at an enterprise value of $4.8 billion.

On October 5, 2020, the Company filed a registration statement on Form S4 with the SEC in connection with the Merger, which, after several amendments, was declared effective by the SEC on November 27, 2020.

The Complaint alleges that 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. In addition, the Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, the Complaint alleges the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (i) the 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.

On February 2, 2023, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. All future docketing was ordered to be done in the lead case 22-CV-01717.

Lead Plaintiff filed a consolidated amended Complaint on April 17, 2023. Defendants filed a Motion to Dismiss the consolidated amended Complaint on June 30. On February 28, 2024, the Court issued an Order granting
Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.

On March 13, 2024, Plaintiff filed a Motion for Reconsideration re: the Order of Dismissal issued on February 28. On May 14, the Court issued an Order granting Plaintiff's Motion for Reconsideration. The Order of February 28, 2024 was vacated in part and amended.

On June 13, 2025, the parties entered into a Stipulation and Agreement of Settlement.