Opendoor Technologies Inc. shareholders didn’t adequately allege the home-buying company committed securities fraud or made misleading statements about its pricing algorithm in its offering documents, a federal court ruled, rejecting a proposed class action.
Most alleged misrepresentations aren’t actionable, and the investors didn’t show intent or a connection between disclosures and a drop in Opendoor’s stock price, Judge Michael T. Liburdi said for the US District Court for the District of Arizona. Liburdi gave the investors a chance to re-plead their complaint.
Zillow Group Inc., also embroiled in shareholder litigation over its “instant buying” house-flipping business, lost a dismissal bid ...
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