$OPEN Downgraded by JMP Over Model Shift — But Legal Troubles Still Cast a Shadow

Court: D. Arizona

Case: 2:22-cv-01717

Citizens JMP just downgraded Opendoor Technologies OPEN from “Market Outperform” to “Market Perform,” citing the company's move away from its iBuying model. The firm is now leaning on agent-based transactions instead of direct purchases, raising questions about margins and growth. At the same time, analysts noted a 3.92x debt-to-equity ratio and structural headwinds that could limit upside, despite recent stock gains.

But for some investors, the biggest concern isn’t strategy — it’s the alleged deception from the past.

• Opendoor used an iBuying algorithm to flip homes.

• It claimed strong margins and tech-driven pricing accuracy.

• In 2022, Bloomberg revealed it lost money on 42% of home sales — and up to 76% in Phoenix.

• The algorithm failed to adjust to market changes.

• Investors said they were misled about profitability.

• OPEN dropped over 80% from post-merger highs.

• A lawsuit was filed over false statements and losses.

• Opendoor agreed to settle with investors.

• The deal covers those harmed by the iBuying collapse.

• Late claims may still be accepted.

• Payouts usually take 8–12 months after court approval.

You can check more information about it and file for a payout HERE.

Market models change — but some investor losses don’t.