Opendoor Technologies receives preliminary court approval for settlement in derivative action

Opendoor Technologies Inc. (NASDAQ:OPEN), currently trading at $8.07 with a market capitalization of $5.9 billion, announced Wednesday that the U.S. District Court for the District of Arizona has granted preliminary approval of a proposed settlement in a derivative action, according to a press release statement and a recent SEC filing.

The preliminary approval, issued on September 11 by the District Court, relates to the case Gera v. Palihapitiya, et al. (Case No. 2:23-cv-02164-SMB). The settlement also covers related litigation pending in the U.S. District Court for the District of Delaware and the Delaware Court of Chancery. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.35, indicating robust financial flexibility to handle legal matters.

As previously disclosed, the parties participated in a global mediation on February 7 and reached an agreement in principle for Opendoor Technologies to adopt certain corporate governance reforms. In exchange, a full release of claims was agreed upon by the parties involved in the settled matters.

On June 27, Opendoor executed a Stipulation of Settlement outlining the terms and conditions of the agreement. On the same day, the plaintiff in the Gera action filed a motion seeking preliminary approval of the proposed settlement.

The District Court’s order directs that the Stipulation of Settlement and the notice to current Opendoor stockholders regarding the proposed settlement and dismissal with prejudice of the derivative actions be made available as exhibits to the SEC filing.

Opendoor Technologies Inc. is listed on The Nasdaq Stock Market LLC under the ticker symbol OPEN.

All information in this article is based on the company’s press release statement and its Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Opendoor Technologies has announced a series of significant leadership changes and developments. Christy Schwartz has been appointed as the interim Chief Financial Officer, replacing Selim Freiha, with her term effective from September 30, 2025. This change follows the company’s announcement that Carrie Wheeler has stepped down as CEO and Board member, although she will continue as an advisor to the Board through the end of 2025. In the CEO transition, Kaz Nejatian has been appointed as the new Chief Executive Officer and has been granted substantial equity awards, including a restricted stock unit award for 1,580,611 shares and performance-based awards for additional shares.

Additionally, Opendoor’s stock has been under scrutiny from prominent investors. Martin Shkreli has announced a short position in the company, describing it as "an obvious short," while Citron Research issued a bearish report criticizing Opendoor’s business model. These developments have sparked discussions in the investment community regarding the company’s future. As Opendoor navigates these leadership changes and market perceptions, investors remain keenly focused on the company’s next moves.

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