OSI is claiming that the term "open source" is what is false advertising. But both the trial and appellate courts are specifically calling out the phrase "open source and free" as false advertising. Neo4j EE and ONgDB may be "open source," but they are definitely not "free."
If the defendants had only claimed that ONgDB was "open source" they might not have had any issues. But because they removed the Commons Clause and also declared it "free," they are in violation of the original license of Neo4J EE, a license which is still in force, and a license which is not "free."