Latch, CEO, and CFO Sued; Alleges Fraud

By IPVM Team, Published Sep 02, 2022, 10:16am EDT (Info+)

One week after Latch quietly admitted "material errors and possible irregularities" the company, its CEO, former CFO, and current interim CFO have been sued, with the plaintiff alleging fraud.

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The lawsuit deepens challenges for the company as its stock price struggles and it faces an audit investigation following its failure to file its Q2 earnings report.

See recent IPVM coverage of Latch's problems:

"False ***/** ********** **********"

*** ******* ***** *********,******* *. *****, ***,******* ***** **** ***** ***/** ********** statements ** **** ** ****** ** disclose ******** *********** ***** *** *******. This ******** "********** ***** ************ " and ******** ******* ***********.

********** *** ***** ******, ********** **** materially ***** ***/** ********** **********, ** well ** ****** ** ******** ******** adverse ***** ***** *** *******’* ********, operations, *** *********. ************, ********** ****** to ******** ** *********: (*) **** there ****unreported ***** ************ related to hardware devices; (2) that, as a result, the Company hadimproperly ********** ******* throughout fiscal 2021 and first quarter 2022; (3) that there were material weaknesses in Latch’s internal control over financial reporting related to revenue recognition; (4) that, as a result of the foregoing, Latch would restate financial statements for fiscal 2021 and first quarter 2022; [emphasis added]

************, *** ******* ******* ******* ********** mislead *********, ********* ** ****** *** damages:

(*) ****, ** * ****** ** the *********,Defendants’ ******** ********** about the Company’s business, operations, and prospectswere ********** ********** and/or lacked a reasonable basis.

** * ****** ** **********’ ******** acts *** *********, *** *** *********** decline ** *** ****** ***** ** the *******’* **********, ********* *** ***** Class *******have ******** *********** ****** *** *******. [emphasis added]

Schemes ** *******

*** ******* ****** *** ****** ** May **, **** ******* ****** **, 2022 *** ******* *** ******* *** its ********** **** ******* ** ******* to ******* ********* ** ******** ** artificially **** ***** ***** *** *****:

********** (*)employed *******, *******, *** ********* ** *******; (ii) made untrue statements of material fact and/or omitted to state material facts necessary to make the statements not misleading; and (iii) engaged in acts, practices, and a course of business which operated as a fraud and deceit upon the purchasers of the Company’s securities in an effort to maintain ************ **** ****** ****** *** *****’* ********** [emphasis added]

**** *** **** ****** *** ******* covers, ***** **** **** **% ** its *****, ** ***** * $* share *****. *******, *****'* ***** ***** surged ** ** ****, ******* ** high ** $**.** ** *********, ****, up ~**% **** **'* ******* ********:

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Growing ******** *** *****

**** ******** ********** ** ******** ********** practices ** ***** (***:***** *** ****** "**** *********" **** 38% "*** ****" ******** *******).

********, **** ******** *** ****** **************** ***** *********** *** ******** ********, * ****** ***** ******** ** investors ******* *** ******* *** ******** presentations.

More ******** ******

***** ***** ****** *** ********** ******* & ******** *** ***** ******* **** ***** filed, ****** *** ****** ** ******. Yesterday, ****** ******* ** ****** *. ***** announced**** **** ***** ****. ************,****** ***** & ******, *.************** *** ************* ***** *** "********* claims".

** *** **** **** ******* ***** of **** ******** *****, ** **** update *** *********.

Comments (6)

********* *********** ****** ****** *** **** of ************ ** *** ******** ******** of *** *****. ******** *** ********* veil ****** ****** * ****** ******** for ****** ****** **** *** *********. The ******* ****** *** *** *** lenient **** *****-****** ******.

Agree: 6
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** ****, *** **** ******* ***** IPVM *** ***** ********* *. *****, ***.

*** **** ****, ***** *** ****** on ********* ****, *** *** *** to ******** *, **** ** *******:

*** **** *** ********* *****, ***. to ******* ** *** ********* ** extended ********** *, ****. ******* ** ******* ** *** complaint ** **** **** ***** ****** in * ******* ******** ***** ******* against *** *********.

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******: *** **** ********* *** ** still ******* ******* ********** ******. ******, defendants **** *** **** ** ****** and **** **** *** **** ******** to ******* ****:

** ****, *** ****** ***** **** the ***** ********** ***** ** *** complaint -- **** ************, ***** ********, and ***** ********* -- **** *** been ******. *** **** *** *** plaintiff ** ***** ***** ********** ** extended ********* **, ****

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*** *** *-* ***** ** ******** 2nd, ***** ********* ** ******** ** his $**** ****** *********.

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