Mulakan
11thestate11thestate

OPEN: Meme Rally Fizzles After Reverse Split Delay — But $39M Algorithm Lawsuit Still Lingers

Bacaan 1 minit
OPEN

Court: D. Arizona

Case: 2:22-cv-01717

Opendoor Technologies OPEN stock is under pressure after the company postponed a shareholder vote on a proposed reverse stock split. The meeting, originally set for July 29, was pushed to August 27 after the stock price surged above the $1 threshold required to maintain Nasdaq listing.

While this delay may offer some breathing room, investor concerns are rising again — and not just about the stock's volatility. Opendoor is still navigating the aftermath of a $39 million settlement over misleading claims about its pricing algorithm and financial outlook.

What’s Moving Opendoor Now

  • Reverse Split Vote Postponed: Company delayed shareholder vote until August 27
  • Reason for Delay: Share price recently rose above $1 Nasdaq minimum, avoiding immediate delisting risk
  • Meme Stock Volatility: Gains earlier this month followed public support from EMJ Capital's Eric Jackson
  • Momentum Fading: Stock dropped 14% intraday on July 29 as meme-fueled enthusiasm waned
  • Capital Raising Risks: Investors worry Opendoor may issue new shares, diluting current holders
  • Price Snapshot: OPEN shares trading at $2.11, down sharply from recent highs
But Opendoor Still Faces Fallout From Its Algorithm Misrepresentation Lawsuit

Timeline Overview

  • December 2020: Opendoor goes public via merger, promoting its iBuying algorithm for real estate
  • August 2022: Bloomberg reports Opendoor lost money on 42% of sales, worse in key markets
  • September 19, 2022: Bloomberg analysis goes public; expert warns losses may deepen
  • July 2025: Company finalizes $39 million cash settlement with investors

Allegations Include

  • Overstating the reliability and performance of its pricing algorithm
  • Misrepresenting its ability to remain profitable in declining housing markets
  • Withholding critical internal data contradicting optimistic public statements

Investor Update

Opendoor agreed to a $39 million cash settlement to resolve claims that it misled investors about the viability of its iBuying technology and financial outlook. While the deal may bring some closure, the stock has already fallen more than 80% from its December 2020 post-merger peak, leaving many investors with substantial losses and ongoing concerns about future performance.

You can check more information about it and file for a payout HERE.

Saham AS
Baca lebih lanjut dari 11thestate

Lebih berita dari 11thestate