| COMPANY |
Latch, Inc. f/k/a TS Innovation Acquisitions Corp. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
22-cv-07473 |
| JUDGE |
John G. Koeltl |
| CLASS PERIOD |
May 13, 2021 and August 25, 2022 |
| SECURITY TYPE |
Securities |
Latch investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than October 31, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
Class action lawsuits have been filed on behalf of those who purchased or acquired Latch, Inc. f/k/a TS Innovation Acquisition Corp. (“Latch”) (NASDAQ: LTCH) securities between May 13, 2021 and August 25, 2022, both dates inclusive (the “Class Period”).
Case Background:
On August 25, 2022, Latch filed a Form 8-K with the SEC stating that: “the Audit Committee, in consultation with the Company’s management, has determined that the Company’s consolidated financial statements for 2021 and the first quarter of 2022 will be restated.” Latch added that, “based on the preliminary findings of the Investigation, certain revenue recognition errors occurred as a result of unreported sales arrangements due to sales activity that was inconsistent with the Company’s internal controls and procedures,” and that “the Company’s management is assessing the effect of the matters identified to date and the restatement on the Company’s internal control over financial reporting and its disclosure controls and procedures.” Following this news, Latch’s stock fell $0.13, or 12.2%, to close at $0.95 per share on August 26, 2022.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) there were unreported sales arrangements related to hardware devices; (2) as a result, the company had improperly recognized revenue throughout fiscal 2021 and first quarter 2022; (3) there were material weaknesses in Latch’s internal control over financial reporting related to revenue recognition; (4) as a result of the foregoing, Latch would restate financial statements for fiscal 2021 and first quarter 2022; and (5) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.