Court: D. Arizona
Case: 2:22-cv-01717
Opendoor Technologies OPEN has delayed a key shareholder vote on a proposed reverse stock split following a sharp rally that pushed its stock price above the critical $1 threshold required for continued Nasdaq listing. The special meeting, originally scheduled for July 28, has been rescheduled for August 27. While the delay offers short-term flexibility, Opendoor is still working to regain long-term investor trust after reaching a $39 million settlement related to misleading claims about its pricing algorithm and financial performance.
Reverse Split on Hold: What’s Happening
- Vote Postponed: Reverse split vote delayed from July 28 to August 27, 2025
- Why It Matters: OPEN shares rose from $0.78 on July 11 to $2.54 by July 27, lifting the stock above Nasdaq’s minimum listing threshold
- Compliance Deadline: Stock must remain above $1 for 10 consecutive trading days by November 24, 2025
- Meme-Stock Boost: Rally fueled by bullish comments from EMJ Capital’s Eric Jackson
- Board Reassessment: Company will monitor market conditions before proceeding with the vote
- Volatility Persists: Concerns remain about the sustainability of recent price momentum
But Opendoor Still Faces Fallout From Its Algorithm Misrepresentation Lawsuit
Timeline Overview
- December 2020: Opendoor goes public via merger, touting its iBuying platform
- August 2022: Internal data shows 42% of transactions lost money, with losses up to 76% in some markets
- September 19, 2022: Bloomberg publishes findings; analysts warn of worsening financial performance
- July 2025: Opendoor agrees to a $39 million cash settlement with investors
Allegations Include
- Misrepresenting the effectiveness of its algorithmic pricing platform
- Failing to disclose consistent losses in major markets
- Overstating its ability to remain profitable in a declining housing environment
Investor Update
Opendoor has agreed to pay $39 million to settle claims that it misled investors about its technological capabilities and financial fundamentals. The stock has already fallen over 80% from its December 2020 post-merger peak of $31.25 per share, reflecting lasting skepticism. As the company navigates renewed volatility, investor scrutiny remains high ahead of the rescheduled shareholder meeting.
You can check more information about it and file for a payout HERE.
