$OPEN Settled With Investors Over Issues With Its Housing Algorithm – How to Claim Your Payout

Court: D. Arizona

Case: 2:22-cv-01717

Opendoor OPEN has finally agreed to settle a lawsuit from investors who say the company misled them about the strength of its pricing algorithm, its profit margins, and its ability to stay afloat during a housing market downturn. The settlement, announced in March 2025, follows years of crisis—including disappointing earnings, regulatory scrutiny, and a stock that lost nearly 90% of its value.

What Really Happened With Opendoor's Algorithm

In 2020, Opendoor promoted its iBuying platform as a tech-powered alternative to traditional real estate, claiming its algorithm could price homes more accurately and generate stable 4–6% profit margins—even during volatile market cycles.

However, these promises couldn’t pay off, since much of the pricing process was still manual. By 2022, the company reported weaker-than-expected margins, and the FTC hit Opendoor with a $62M penalty over deceptive sales practices. That September, Bloomberg revealed the company was losing money on nearly half its home sales, and by the end of the year, it was clear the company had oversold its edge.

Investors Wanted Answers

As these revelations came to light, investors began questioning whether Opendoor had exaggerated its capabilities and failed to disclose how sensitive its profits were to market shifts. In October 2022, shareholders filed a lawsuit accusing the company of hiding info about the true state of the company and inflating its stock price with false claims.

The Deal That Finally Closed the Chapter

Now, after more than two years, there’s a $39M settlement on the table that offers some resolution to shareholders who took a hit. The settlement terms have been submitted to the court for approval, but all affected investors can already begin filing their claims. You can check the latest details and submit yours here.