Bloomberg Law
March 16, 2023, 8:37 PM

Opendoor Leaders Misrepresented Benefits of Algorithm, Suit Says

Martina Barash
Martina Barash
Reporter

Opendoor Technologies Inc.'s CEO, chief financial officer, and several board members caused the company to portray its house pricing algorithm inaccurately in merger and public offering documents, an investor says in a derivative suit.

Opendoor’s corporate image and goodwill are impaired, as is its ability to raise capital on favorable terms, shareholder Seth Van Dorn says on behalf of the company. He filed his suit Wednesday in the US District Court for the District of Arizona.

Further, the company faces the costs of defending a proposed class action over the same issues, he says.

The class action plaintiffs alleged in ...