SAN DIEGO, Sept. 6, 2022 (GLOBE NEWSWIRE) —

The class: Law firm for shareholder rights Robbins LLP Reminds investors that a shareholder has filed a class action lawsuit on behalf of all individuals and entities holding Latch, Inc. LTCH Securities between May 13, 2021 and August 25, 2022 for violating the Securities Exchange Act of 1934. Latch is an enterprise technology company that offers a complete building operating system, LatchOS, to meet the essential needs of modern buildings.

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What is it about in this case: Latch, Inc. (LTCH) f/n/a TS Innovation Acquisitions Corp. disclosed revenue recognition errors due to unreported sales arrangements

According to the Complaint, on or about June 3, 2021, Latch became a public entity through a business combination with TSIA. On August 25, 2022, after the market closed, Latch announced that it would restate its 2021 and first quarter of 2022 financial statements due to revenue recognition errors related to hardware device sales. Specifically, the company stated that “certain revenue recognition errors occurred as a result of unreported sales agreements resulting from sales activities that were inconsistent with the company’s internal controls and procedures.” As a result of this news, Latch’s stock fell $0.13, or 12.2%, on unusually high trading volume to close at $0.95 per share on August 26, 2022.

Throughout the Class Period, the Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, the defendants failed to disclose to investors that there were undisclosed hardware device sales agreements that would result in the Company not properly recognizing revenue throughout fiscal 2021 and the first quarter of 2022. This key weakness in Latch’s internal control over financial reporting related to revenue. .