Latch Falls To Penny Stock After Admitting "Material Errors and Possible Irregularities"
Latch's stock, already down 90% for the year, fell another 10%+ on Friday, closing under a dollar after it quietly disclosed "preliminary findings" that found "material errors and possible irregularities" in its financial reports.
Earlier this month, an IPVM investigation revealed that Latch Manipulated and Inflated Bookings, Allege Ex-Employees.
Inside this note, we examine the severe stock fall, the admission, and the risk of fraud and shareholder lawsuits.
*** *-* ****** ********"*********** ********" ** *** ***** ********* warning ********* ****:
********* ********** *** *** ***** ******* of **** ******** ** *** *******’* Quarterly ****** ** **** **-* *** the ***** ****** ***** ***** **, 2022, ****** ** ****** ** ****** upon ** *result ** ******** ****** *** ******** ************** [emphasis added]
************, *** ****** ****** *** ***:
****** ** ***** *** ******* ********** revenue ********** **** *** **** ** hardware *******
********** ****:
******* ******* *********** ****** ******** ** a ****** ** ********** ***** ************ due ** ***** ******** **** *** inconsistent **** *** *******’* ******** ******** and **********
****** ** ****** ** *** ** more ******** ********** ** *** *******’* internal ******* **** ********* ********* ****** the ********** *******
*** ****** **** *** ****** **** specific ***** ************ **** **********.
"Material ****** *** ******** **************"
** ********, *** ********** ******* ****** and ************** ** ***** ** ******,** *** ** ********:
****** ****** ** ************* ************* ** omissions ** ******* ** *********** ** financial **********.
************** ****** ** *********** ************* ** omissions ** ******* ** *********** ** financial **********. ************** ******* ********** ********* reporting ********** ** ****** ********* ********** misleading, ********* ****** ********** *****, ******************* of ******, ********* ****** ************.
************** *** ** ************ *** ** ********:
*** ************* *** *** ***** ***** than *****—*** *******, ************, *********** ************, misappropriation, ** ************—** ***** ** ******** confusion **** * ***** ********** ** fraud ** ***** ****** ** ****** alternative *****.
Intentional ****?
**** *** ********** ***** *******, * key ******* **** ** ******* **** find ***** "******** **************" **** ************* done ** ******** *** *******. ** the ****** **** *** ***** ********* or **** *********** *** *** ******* this *** *********** *** ******* ***** charges ** *****.
Shareholder ********
*********, ***** **** *** ******* *** already ******** **** *** ******* *** the **** * ******** (*.*., *** of **** *** ** ****) ****** not ** ****** ** (**'* ****** was ******* ******* ** **** ******), Latch ***** *********** ********.
Stock *******
** *** **** ****, ********* **** morning, *****'* ***** ** **** **** 20%:
** *** **** ****, *** ***** is **** **** **%:
*** ****** ************** ** *** ~$*** million, **** **** * ******* ******* from **** ***** ****** **** ****.
**** **** ****** ** **** *********** is ******** **** *** ***** *********.
*** ******* *** ***** **** ******. Over $** ** ***** **** ** a ****. ********* (*** ******) ***** be **** ** *** ****** *** arrogant ** *** ***** **** ** success. ** *** *** ****** *******.
******* **** ** *** ***** ** (eventually) ** ******** ** *** ***** continues ***** $*,*.*.:
****** ********* *** *** $* ******* bid ** *** ** *** **** common ******* *** *********, **** ** was *** ***** ****** *** **** the ***** ** *** **********. ** a *******'* ***** ***** ***** ***** $1 *** ** *********** ******* ****, it *** ** ********.
**** ** * ******-**** **** *** Latch. *** **** ********* **** *** Latch ** **** ** *** *** released *** ********* ** ****** ** the ******* ********* ******:*****://***.******.***/*****-*******/*****-********-********-******-************-**-***-**********-****-**-**
******: ***** ******* ** *** *** day **** * ******:
******* ********* ********** ***** **** ***** is *** ***-*********** ******** ** ******* recognition. **** ***** **** ******** **** Latch ********** $*.* ******* ** ********* as ******* *** **** *** ****, categorizing **** ** ** ******** ******* rather **** ******* **** ******* ** the ***** ** ** **** *******:***** *** ****** "**** *********" **** 38% "*** ****" ******** *******
**** ***** **** ******** *********** ****** Latch **** ******* * ***** *** to ************ *********.
****** **** ** ******** ******* ** furthering **** ** ***** *** ***** of ***** ******’* ****.
***** **** *** **** ***** * dollar:
** ** ******* **********, *** ***** lawsuit *** **** ***** ******* ** this *********, ***:*****, ***, *** *** ****; ******* Fraud
***** ***** *** * *** ***-**** low *****:
** *** ***** ******* **** *****, briefly ** **** **% *** *** has ********* ** * *** ***.
*** **** **** * ***** **** below * ****** ****** ** ** delisted? ***** ****** **** **** ******** are **** ***** *.** *** **** been ***** *** * *****.
***:************ ** ** *******
*** **** *** ****** ******** ** but*** ****:
** * ******* ****** *** ** consecutive ******** **** ***** *** $*.** minimum ******* *** ***** ***********, ****** will **** * ********** ****** ** the *******, ******** **** ** *** been ******** * "********** ******" **180 ******** ****** ****** ********** **** *** ********** requirements.
** * ****, *** ***** *** Latch ** *** ******* ** **** the ****** *******.
***** ******** ******** ****** ************ ** non-compliance
*** ****, ***. **, **** (***** NEWSWIRE) -- *****, ***. (******: ****) (the “*******”), ***** ** *******, *** full-building ********** ********-**-*-******* (****) ********, ***** announced **** ** ****** **, ****, it ******** * ****** **** *** Listing ************** ********** ** *** ****** Stock ****** *** (“******”) ********* *** Company **** ** *** *** ****** with ******’* ******* **** ****(*)(*) *** continued ******* ******* *** ******* *** not ***** *** ********* ****** ** Form **-* *** *** ******* ***** June **, **** (*** “**** **-*”) by *** ******** *** ****.
*** ******* ********** ********* *** ********* to ****** **** *** **** **-* in *** ************ ** **** ****** on **** ***-** ***** **** *** Securities *** ******** ********** ** ****** 10, ****.
****** ******** *** ******* **** ** has ***** ******* **, **** ** submit * **** ** ****** ********** with ******* ** *** ****** ** the **** **-*. ** ****** ******** the *******’* ****, ** *** ***** the ******* ** ********* ** ** to *** ******** **** **** *** due **** ** *** **** **-* to ****** **********.
*** ****** ******** **** ****** *** no ********* ****** ** *** ******* or ******* ** *** *******’* ****** of ****** ***** ** ********. *******, if *** ******* ***** ** ****** regain ********** **** *** ****, *** Company’s ****** ** ****** ***** *** warrants **** ** ******* ** ********* from ******.
*** ******* ******* ** **** *** Form **-* ** **** ** ***********.
***** *****, ***.
***** ***** ****** ****** ****** ** live, ****, *** ***** ******* * system ** ********, *******, *** ********. For **** ***********, ****** ********** | ****** ********* ****** ****** to ****, ****, *** *****..
***** *** ******** ******, ***, ** you ***, ** **** **** ***** have *** ***** ***** ** ********* results ******* ** ****** **** ****.
******* **** ** ** *** ***** says ***** $*.
*** *******, *** ***** *** ******* is **** "******** ****** *** ******** irregularities" *****. **** **** *** ** release ***** ***** ******** ***, ********* on **** **** **** ***** ***** create ******* ******.
***** * *** *** **** *** today ** $.** *** ********* ******* at $.**
** ******* **** ***** ***** **** in * ****** *** ** *** SEC ******* *****.
*******: *****, **** **** *********** "************* [****] ******** ******* ***** *** violated *** ******* ********** **** ***/** engaged ** ***** ******** ******** *********."