The law firm of Kirby McInerney LLP is investigating potential claims against Latch, Inc. (“Latch” or the “Company”) (NASDAQ: LTCH). The investigation concerns whether Latch has violated the federal securities laws and/or engaged in other unlawful business practices.
Latch is a technology company that specializes in keyless entry security systems to open and manage doors in apartment buildings from a smartphone.
On August 25, 2022, in a Form 8-K filed with the SEC, Latch announced a material financial accounting restatement. The Company cited material errors and possible irregularities relating to, among other things, the way it recognized revenue associated with the sale of hardware devices since listing its shares on NASDAQ. Specifically, Latch noted that the “Audit Committee has determined the statements for 2021 and 1Q 2022 will be restated” and “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.” On this news, the price of Latch shares declined by $0.14 per share, or approximately 12.96%, from $1.08 per share to close at $0.94 on August 26, 2022.
If you purchased or otherwise acquired Latch securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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