Online real estate firm Opendoor has agreed to pay $62 million to settle Federal Trade Commission's allegations that the company tricked home sellers into thinking they would make more money selling to Opendoor than they would on the open market.

The FTC alleged that Opendoor using misleading and deceptive information when interacting with potential sellers when in reality, selling to Opendoor meant home sellers made thousands of dollars less than they would have made selling their homes using the traditional process.

Under a proposed administrative order, Opendoor is barred from making deceptive, false or unsubstantiated claims about how much money it will receive or the costs sellers will have to pay to use its service. Opendoor must also have competent and reliable evidence to support any representations made about the costs, savings or financial benefits associated with using its service, the FTC said.

If you have continuously held Opendoor shares since on or around its IPO of December 21, 2020, or via its predecessor special acquisition company (SPAC) Social Capital Hedosophia Holdings Corp. II (NYSE: IPOB) you can seek corporate reforms, the return of funds back to company coffers, and potentially a court approved incentive award if appropriate.

If you would like to learn more about this matter at no cost to you, contact us at jgrabar@grabarlaw.com or call 267-507-6085.