RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Latch, Inc. ("Latch" or the "Company") (NASDAQ: LTCH) securities during the period from May 13, 2021 through August 25, 2022 inclusive (the “Class Period”).
Latch shareholders may, no later than October 31, 2022, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Latch and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
According to the complaint, on or about June 3, 2021, Latch became a public entity via business combination with TSIA. On August 25, 2022, after the market closed, Latch revealed that it would restate financial statements for 2021 and the first quarter of 2022 due to revenue recognition errors related to the sale of hardware devices. Specifically, the Company stated that “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.” On this news, Latch’s stock fell $0.13, or 12.2%, to close at $0.95 per share on August 26, 2022, on unusually heavy trading volume.
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 there were unreported sales arrangements related to hardware devices that would result in the Company improperly recognizing revenue throughout fiscal 2021 and first quarter 2022. This material weakness in Latch’s internal control over financial reporting related to revenue recognition required Latch to restate financial statements for fiscal 2021 and first quarter 2022.
If you are a member of the class, you may, no later than October 31, 2022, request that the Court appoint you as lead plaintiff of the class. 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. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.