Opendoor (NASDAQ:OPEN) stock is sliding on Tuesday as investors react to news of fines from the Federal Trade Commission (FTC) over false advertising.
The allegations from the FTC claim that Opendoor misrepresented its services to customers. That includes claims that it would save customers money with lower transaction fees while still buying homes at market value. It would show customers charts to support its claims after they showed interest in selling their homes.
The FTC counters those claims with the following statement:
In fact, the vast majority of consumers who sold to Opendoor lost thousands compared to what they would have realized in net proceeds from selling on the market because Opendoor’s offers have been below market value on average and its costs have been significantly higher than what consumers typically pay.
What Does This Mean for OPEN Stock?
The FTC has revealed a proposed settlement agreement with the home buying company. This would have Opendoor paying a $62 million fine. It would also require the company to change its business practices.
It’s worth mentioning that OPEN stock has been popular with retail traders lately. While that’s seen the company’s stock go through recent bouts of volatility, shares aren’t seeing heavy trading today.
OPEN stock is down roughly 1% as of Tuesday afternoon.
There’s more stock market news traders will want to know about below!
InvestorPlace has all of the latest stock market news for Tuesday! A few examples include why Faraday Future (NASDAQ:FFIE) stock is rising, what has shares of Innoviz (NASDAQ:INVZ) stock on the move, as well as the most recent Pinterest (NYSE:PINS) earnings news. You can find all of this news at the following links!
More Tuesday Stock Market News
- FFIE Stock Pops 30% as Faraday Future Gets Cash
- Why Is Innoviz (INVZ) Stock Up 16% Today?
- Pinterest (PINS) Stock Surges on User Numbers, Elliott Stake
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.