Opendoor's legal battle results in a $39 million settlement following allegations that the platform was heavily reliant on human input, making it susceptible to market changes. The company's stock price saw a steep decline of over 94% since its 2020 debut. To mitigate litigation costs, Opendoor did not admit wrongdoing. Additionally, the firm reported substantial first-quarter revenue while laying off employees as part of a restructuring to adapt to a shifting real estate landscape, moving toward a diverse business model with fewer acquisitions in 2024.
The lawsuit alleges the platform was heavily reliant on human input, making it vulnerable to market fluctuations like any other brokerage.
Opendoor did not admit wrongdoing in the $39 million settlement, seeking to avoid litigation costs and risks.
Plaintiffs' attorneys described the $39 million settlement as a prompt and substantial tangible recovery, aiming for nearly $11.7 million in legal fees.
Following significant layoffs and restructuring, Opendoor aims to transition to a multi-product, multi-channel business model to reduce losses.
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